Hong Kong residential sales gain momentum as primary transactions rise 10%
Healthy transaction volumes and improving financing conditions signal sustained buyer confidence, potentially supporting 0%-3% mass-market price growth and up to 5% for well-positioned new projects.
Hong Kong primary residential sales rose 10% year on year to 14,272 units in the first eight months of 2026, while secondary transactions jumped 32% to 35,690 units.
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Over 14,200 units were transacted in the first eight months of 2026.
Hong Kong's residential market remained resilient in August despite the typical summer slowdown, with healthy demand and sustained buyer confidence supporting transaction activity, according to Knight Frank.
Primary residential sales increased 10% year on year to 14,272 units during the first eight months of 2026, while secondary-market transactions jumped 32% to 35,690 units, Knight Frank said.
The agency said continued project launches by developers and healthy underlying demand mean primary sales are well positioned to surpass its previous forecast of 20,000 units for 2026, provided monthly sales maintain a pace of more than 1,500 units through the end of the year.
Luxury market remains supported
Luxury residential transactions, defined by Knight Frank's global classification as deals above HK$78 million, eased 15% month on month to 29 transactions in August.
Knight Frank attributed the decline largely to the seasonal impact of the summer holiday period rather than a deterioration in underlying demand. The agency said luxury leasing demand remained robust, with its Luxury Rental Index rising 5.8% year to date and 7.7% year on year.
Demand for premium rental homes has been supported by Chinese mainland professionals and expatriates, Knight Frank said.
Looking ahead, the agency expects Hong Kong's residential market to strengthen towards the end of 2026 as confidence gradually returns. Healthy transaction volumes, sustained end-user demand and improving financing conditions are expected to provide support for the market.
Knight Frank forecasts mass residential prices to rise by 0% to 3%, while well-positioned new residential projects could record price growth of up to 5%.