Hong Kong home price rally set to cool after strongest first half in 7 years: analysts
Housing prices in the city have risen for 13 consecutive months, but analysts expect the market to lose steam amid weaker investor sentiment
The rally in Hong Kong’s housing market is expected to slow in the coming months, after a stellar first half of the year that saw home prices post their strongest gains for the period in seven years.
Private home prices in the city rose by 0.3 per cent in June from a month earlier, extending their gains for a 13th consecutive month, according to data released by the Rating and Valuation Department on Wednesday.
The city’s home-price index climbed 7.9 per cent in the first six months of 2026 – the strongest first-half increase since 2019 – but still remained about 19 per cent below its September 2021 peak.
The latest figures suggest the market has already achieved most of this year’s expected gains, with analysts increasingly expecting prices to stabilise rather than continue climbing at the same pace.
“As prices have already advanced by 7.4 per cent year to date, this suggests limited upside for the remainder of the year, with the market likely to enter a consolidation phase as earlier gains are absorbed and price momentum softens,” said Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong.
The consultancy maintains its forecast of 5 per cent to 10 per cent growth in Hong Kong residential property prices over the course of 2026.