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HK Property Market Surges 9% From Recent Low
12 Feb
Summary
- Hong Kong home prices climbed 9% after hitting a nine-year low.
- Property cooling measures were removed, boosting transactions.
- It's now cheaper to buy than rent in the expensive city.
Hong Kong's residential property market has shown a significant turnaround, with home prices rising 9% from a nine-year low reached in early 2025. This rebound follows the complete removal of property cooling measures, which has revitalized transaction volumes.
The commercial sector is also showing signs of recovery, despite ongoing high office vacancy rates. This improvement is linked to increased activity in financial services and IPOs.
Experts are analyzing whether Hong Kong can avoid the property crisis affecting mainland China. The anticipation of lower borrowing costs, as the US Federal Reserve enters an easing cycle, is a key factor in sustaining this recovery.
Analysts are examining the "wealth effect" from a recovering stock market and the impact of a 270,000-strong influx of talent on the leasing sector. A surprising development is that buying a property in Hong Kong is now often cheaper than renting.
