Hong Kong property market rebounds with sharp home price rise and office lease surge

Bloomberg Intelligence projects Hong Kong secondary home prices to increase by 19% over 2026‑2027, marking the strongest annual gain in almost a decade. The surge is driven by robust demand from mainland Chinese buyers, a slowdown in new construction and record‑high rents, which are expected to push the residential vacancy rate down to about 3.5%, its lowest since 1990.

At the same time, occupancy at CK Asset’s 41‑storey Cheung Kong Center II office tower has risen from roughly 10% when it opened in 2024 to about 60% in mid‑2026, with the landlord targeting 75% by year‑end. Grade‑A rents in Central climbed 7.3% in the first half of the year, while vacancy rates fell to 8.8% from 10.9% at the end of 2025. Finance and insurance firms account for roughly half of the new leases, signaling a broader recovery in Hong Kong’s commercial property market.