Hong Kong’s residential property market is projected to rise between 3% and 5% in 2026, supported by lower borrowing costs and resilient investor demand, according to CBRE Hong Kong. The latest home price index was released by the Rating and Valuation Department.
Eddie Kwok, Executive Director of Valuation & Advisory Services at CBRE Hong Kong, said tensions in the Middle East have not yet had an immediate impact on the local housing market. He noted that persistent geopolitical risks and any resulting rise in oil prices could lift inflation and interest rates, creating headwinds for the sector.
Kwok added that capital inflows into Hong Kong and the continued decline in HIBOR—down more than 100 basis points since the fourth quarter of last year—are providing support. Lower financing costs are expected to encourage more buyers to enter the market and sustain home price growth.
