Hong Kong residential transactions drop as office leasing hits 2019 highs

The Hong Kong residential market entered a consolidation phase in the third quarter of 2026. Total residential transaction numbers fell by 40% quarter-on-quarter and 21% year-on-year, reaching approximately 13,240 cases. Home prices saw a slight decline of 0.8% between July and August, though they maintained a cumulative rise of 7% for the first eight months of the year.

Market sentiment has turned more cautious due to shifts in the U.S. Federal Reserve’s interest rate outlook, increased stock market volatility, and tighter cross-border capital controls in mainland China.

In contrast, the Grade A office market showed strength. The total new leased area for Q3 reached 1.4 million square feet, the highest quarterly level since 2019, driven largely by expansion in the banking, financial services, and insurance (BFSI) sectors. Citywide net absorption for the quarter was recorded at 412,400 square feet.