Hong Kong property market sees luxury sales slowdown amid overall home‑sale surge

Analysts say Hong Kong’s high‑end residential market is cooling after a series of record‑price transactions. Luxury home values rose about 2 % in the second quarter, but the total value of luxury deals fell 30 % to HK$8.76 billion and the number of sales dropped from 70 to 48, as weaker equity markets and new mainland outbound‑investment rules dampen buyer confidence.

In contrast, the broader residential sector posted a 32 % jump in Q2 sales, reaching 22,150 units – the highest quarterly total since Q2 2021. The market’s momentum is supported by strong office leasing activity, with net absorption of 396,100 sq ft and rent growth of around 2 %‑4 % in core areas. Retail vacancy in prime districts remained at 0 %, helping sustain overall rental and sales performance.

Mainland Chinese investors accounted for roughly half of transactions exceeding HK$100 million, underscoring their continued influence on the city’s property market.