Hong Kong Home Prices Dive Amid Market Uncertainty
Real Estate

Hong Kong Home Prices Dive Amid Market Uncertainty

Hong Kong, renowned for its sky-high property prices, witnessed yet another decline in home prices for the tenth consecutive month in February, marking the lowest figures since September 2016. The city's property market continues to grapple with challenges, even after the recent removal of decade-long curbs by the government.

According to official data released, home prices in February plummeted by 1.7% compared to the previous month, following a revised 1.2% decrease in January. This downward trajectory persisted despite the government's efforts to stimulate the market by lifting additional stamp duties for foreign and second home buyers, as well as for those selling flats within two years of purchase.

The removal of these restrictions, announced in late February, initially sparked optimism within the real estate sector, evidenced by a surge in transactions. Mainland Chinese investors, in particular, have been actively participating in the Hong Kong property market, accounting for a significant portion of new property sales. Property developers and agents noted that up to a third of new sales are attributed to mainland Chinese buyers, with luxury residential properties valued over HK$30 million experiencing an even higher percentage, reaching around 70%.

Despite the uptick in sales activity, housing prices have experienced a significant decline of more than 20% from their peak in 2021. Contributing factors include higher mortgage rates, an exodus of talent, and a bleak market outlook. Analysts anticipate that prices will remain subdued as developers resort to offering discounts to clear inventory. S&P Global Ratings projected only a moderate recovery in transaction volumes for this year, citing persistently high interest rates as a limiting factor.

In light of these ongoing challenges, the trajectory of Hong Kong's property market remains uncertain, with stakeholders closely monitoring developments and government interventions in hopes of stabilizing the sector amid a persistently challenging economic backdrop.

Hong Kong, renowned for its sky-high property prices, witnessed yet another decline in home prices for the tenth consecutive month in February, marking the lowest figures since September 2016. The city's property market continues to grapple with challenges, even after the recent removal of decade-long curbs by the government. According to official data released, home prices in February plummeted by 1.7% compared to the previous month, following a revised 1.2% decrease in January. This downward trajectory persisted despite the government's efforts to stimulate the market by lifting additional stamp duties for foreign and second home buyers, as well as for those selling flats within two years of purchase. The removal of these restrictions, announced in late February, initially sparked optimism within the real estate sector, evidenced by a surge in transactions. Mainland Chinese investors, in particular, have been actively participating in the Hong Kong property market, accounting for a significant portion of new property sales. Property developers and agents noted that up to a third of new sales are attributed to mainland Chinese buyers, with luxury residential properties valued over HK$30 million experiencing an even higher percentage, reaching around 70%. Despite the uptick in sales activity, housing prices have experienced a significant decline of more than 20% from their peak in 2021. Contributing factors include higher mortgage rates, an exodus of talent, and a bleak market outlook. Analysts anticipate that prices will remain subdued as developers resort to offering discounts to clear inventory. S&P Global Ratings projected only a moderate recovery in transaction volumes for this year, citing persistently high interest rates as a limiting factor. In light of these ongoing challenges, the trajectory of Hong Kong's property market remains uncertain, with stakeholders closely monitoring developments and government interventions in hopes of stabilizing the sector amid a persistently challenging economic backdrop.

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?