(June 26): Hong Kong home prices grew for a 12th month in May, extending the longest winning streak since 2018, a sign that the residential market recovery is taking hold.
The price index for private domestic homes rose 1.4% in May from a month earlier, according to figures released by the Rating and Valuation Department on Friday. The gauge also climbed 12% from a year earlier.
The Asian financial hub has seen home sales rebound in recent months, thanks largely to mainland Chinese buyers. Many of them are highly educated, affluent immigrants attracted by the city’s low taxes and expanded visa options to seek opportunities after the pandemic.
That demand has helped Hong Kong emerge from a prolonged housing slump, with prices rising for the first time in four years in 2025. Knight Frank expects the city to log as many as 80,000 home transactions this year, the most since 2012.
Still, the recovery may face pressure from China’s recent crackdown on illegitimate flows of money across the border. The moves, which have prompted banks to tighten scrutiny of mainland Chinese clients opening accounts, could weigh on the ability of homebuyers to pay deposits.
Uploaded by Magessan Varatharaja
