Hong Kong investment sales more than double in strong capital markets rebound
Discounted and distressed opportunities, stabilising prime office prices and end-user demand signal recovering investor confidence, potentially supporting broader capital-markets activity during 2026.
Hong Kong properties valued at HK$100 million or above generated HK$29.54 billion across 59 deals in January-May 2026, both up 111% year-on-year.
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Investments totalled nearly HK$30 billion between January and May.
Hong Kong's capital markets recorded a sharp rebound in the first five months of 2026, with investment sales more than doubling year-on-year, according to Knight Frank.
The agency said properties valued at HK$100 million or above generated HK$29.54 billion in transactions across 59 deals between January and May, representing a 111% increase in both transaction value and deal volume compared with a year earlier.
Russell Lam, Executive Director, Capital Markets at Knight Frank, said the recovery was driven by an increasing supply of discounted and distressed assets, together with financially motivated sales.
Office properties accounted for 62.5% of total transaction value, supported by end-user demand and stabilising prices that have improved investor confidence in prime assets. The living sector, including residential, residential sites, hotels and serviced apartments, represented 32% of transactions, while retail accounted for just 4.9%.
Looking ahead, Knight Frank expects capital markets activity to strengthen further during 2026, led by residential assets. Retail investment is expected to remain subdued, while logistics continues to face pressure from elevated vacancies and new supply. The agency also expects the office recovery to broaden beyond large owner-occupier acquisitions to include renewed investor interest in strata-titled units within prime buildings.