Key facts
- New home prices in Hong Kong have rebounded by up to 36% from recent lows.
- Developers are pricing new units 7% to 36% higher than in previous years.
- Average prices for new developments this year are approximately 15% above the past four-year lows.
- The housing market recovery is supported by interest rate cuts and returning mainland Chinese buyers.
New home prices in Hong Kong have seen a notable rebound, with some developers increasing prices by as much as 36% from the market's lowest point in recent years, driven by robust demand. Data tracked by JLL indicates that developers have priced new units this year between 7% and 36% higher than those sold previously in the same projects or districts.
On average, prices for initial sales in new developments this year are approximately 15% above the lows observed over the past four years. Savills reported that prices are also rising in subsequent batches of units offered at new projects, signaling firm demand. Norry Lee, Senior Director of Projects Strategy and Consultancy at JLL, stated that housing prices bottomed out in March of the previous year and have been gradually recovering. This recovery is attributed to factors such as interest rate cuts, the return of mainland Chinese buyers, and an improvement in overall market sentiment.
Developers are reportedly no longer solely dependent on discounted pricing to stimulate sales. Some units in popular projects have experienced double-digit price increases, reflecting strengthened market confidence. For instance, discounted prices at Grand Seasons in Tseung Kwan O, launched in January 2025, ranged from HK$14,000 to HK$15,000 per square foot. However, the latest units at the neighboring La Mirabelle I, released earlier this year, were over 10% more expensive, with average discounted prices around HK$15,500 to HK$16,000 per square foot.