Valuer Insights January 2025

Business Insights | Hong Kong Residential Market​ 2025 Outlook

By Valuation & Advisory Services

January 13, 2025

hong-kong-residential-report-valuation

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In this report, we evaluate three major areas of the Hong Kong residential property market for 2025.

  1. Primary vs. Secondary Sales: Which Will Perform Better?
  2. Newer vs. Older Properties: Which to Consider?
  3. What about the Luxury Residential Market?

We also provide our recommendations for (i) Primary Market (ii) Secondary Market (iii) Luxury Market.

Key Takeaways 

  1. Transaction Volume

    Estimate: Close to 60,000 transactions (~10% year-on-year growth), with primary sales contributing around 18,000 to 20,000 units and nearly 40,000 from secondary sales.

    Impact of Easing Borrowing Rates: Lower mortgage payments compared to rental costs can encourage tenants to become homeowners, increasing demand in both primary and secondary markets.

  2. Residential Price 

    Overall:     A mild recovery of 0% to 5%.

    Newer Properties (Below 20 Years Old)    : Expected to experience recovery or price stabilization.

    Older Properties (More Than 40 Years Old)    : Likely to lag behind.

    Rising Rental Demand    : Particularly for one- and two-bedroom units, can drive investment in the primary market. Higher rental yields can attract investors, supporting price stabilization or growth.

  3. Residential Rental Market

    Growth    : Likely to continue its upward trajectory with approximately 5% growth in FY2025.

  4. Luxury Residential

    Price Normalization    : Prices are expected to revert to normal after the market digested significant distressed sales in 2024.

Contacts

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