After four consecutive years of declining home prices, Hong Kong’s property market is finally showing signs of recovery in 2025. As of the end of November, market data reveals the sector is benefiting from several positive factors, including lower interest rates, a stock market rebound, economic growth, record-breaking rents, and reduced supply. These favourable conditions have significantly boosted market sentiment. By the end of the year, the market is expected to see simultaneous growth in transaction volume, value, and property prices, laying a solid foundation for further development in the coming year.
New Home Sales Hit a Four-Year High
One of the key highlights of this year’s property market is the robust performance of the primary (new home) market. According to the Sales of First-Hand Residential Properties Authority, as of late November, approximately 18,736 new home transactions were recorded, marking a year-on-year increase of over 20% and setting a new high since the implementation of the Residential Properties (First-hand Sales) Ordinance in 2013. During the same period, the total transaction value of new homes reached HK$189.2 billion, up 0.6% from last year’s HK$188 billion, and the highest in four years.
Even though December is traditionally a slow season for property transactions, the new home market remains active, buoyed by expectations of further interest rate cuts in the U.S. This favorable outlook is likely to sustain positive market sentiment. It is anticipated that December will see around 1,500 new home transactions, marking the 11th consecutive month with over 1,000 transactions, a record since 2013. For the full year, new home transactions are expected to exceed 20,000, with total transaction value potentially surpassing HK$200 billion.
Kai Tak Emerges as the “Golden District”
Market data shows that Kai Tak has been the standout performer in 2025, claiming the title of the year’s “golden district.” As of late November, new home transactions in Kai Tak exceeded HK$30 billion, with 2,155 deals recorded, the highest in Hong Kong. Popular developments like The Henley, The Knightsbridge, Pano Harbour, Cullinan Sky, and KT Marina have driven sales in the area to a total of HK$26.9 billion.
One development that has particularly stood out is Cullinan Sky, where recent two-bedroom units fetched record-breaking prices despite the overall market not yet returning to its peak. For instance, in the past week, a 450-square-foot unit on the 25th floor of Tower 2 sold for HK$16.584 million, achieving a price of HK$36,853 per square foot—a record for two-bedroom units in Kai Tak. Another unit of the same size on the 11th floor sold for HK$15.255 million, equating to a per-square-foot price of HK$33,900.
The Southern District, including Wong Chuk Hang and Ap Lei Chau, ranked second in transaction value, reaching HK$24.18 billion over the first 11 months. This was largely driven by new projects near Wong Chuk Hang MTR Station, such as Koko Hills and Southland, which recorded several high-value luxury transactions, making the area another key hotspot for investors.
Five New Developments Expected in December
Despite the holiday season, typically a slow period for property sales, five new developments are expected to launch in December, offering a total of approximately 1,630 units. The largest among them is Sierra Sea Phase 2A in Sai Sha, which features 727 units ranging from one- to three-bedroom layouts. The developer has revealed that pricing will be slightly higher than previous phases, but with a short pre-sale period of less than a year, it aims to attract buyers seeking quick move-ins or rental opportunities.
Other notable launches include Wheelock’s Double Coast III in Kai Tak, which offers 525 units primarily targeting one- and two-bedroom buyers. New World Development’s project in Yau Ma Tei, Austin Bohemian, which was originally set to launch 63 units last week, has been postponed to December due to a fire incident in Tai Po. Meanwhile, Henderson Land’s Homantin development, Chester, featuring 241 units ranging from one- to four-bedroom layouts, is scheduled to debut later in the month.
Additionally, K Wah’s Kabitat Tin Hau in North Point, which had previously paused sales, is expected to relaunch before the end of the year. The project, offering 73 units with two- and three-bedroom layouts, is undergoing plan revisions to enhance the buyer experience.
Record-Breaking Rents Attract Long-Term Investors
Alongside rising property prices, the rental market is also performing exceptionally well. According to the latest data from the Rating and Valuation Department, the private housing rental index hit a record high of 200.2 in October 2025. The combination of low interest rates and high rental yields has drawn many investors into the market, particularly those focused on rental income.
For example, a low-floor unit in One Jardine’s Lookout in Happy Valley is renting for HK$13,500 per month, achieving a rental yield of 4.4% with a per-square-foot rent of HK$75. Similarly, the rental market at Cullinan Sky in Kai Tak remains highly active, recording 42 rental transactions in November with an average per-square-foot rent of HK$67, attracting long-term investors with strong cash reserves.
Positive Momentum Continues into 2025
Looking back at the year, Hong Kong’s property market has rebounded after four years of decline. This recovery has been driven by favorable policies, lower interest rates, and surging rents. The primary market, in particular, has emerged as a key growth engine, with record-breaking transaction volumes and values.
As December unfolds and more projects launch, the market is expected to maintain its upward momentum, attracting both buyers and investors. For those with sufficient capital, this may represent a rare opportunity to enter the market during a period of sustained growth.
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