Hong Kong’s rental costs hit another record last month, driving home prices up, as demand from expatriates and mainland talents remained strong.
According to the latest data from the Rating and Valuation Department:
• Rents rose 0.47% month-on-month and are up 6.2% year-on-year. In the first nine months of 2026, rents have increased by 5.8%.
• Private home prices rose 0.19% last month, marking the second straight monthly increase. Prices are now up 9.3% year-on-year and 7.1% in the first nine months of the year.
Shift from rent to buy
With rents continuing to climb while property price growth remains more moderate, the financial case for buying over renting is becoming increasingly attractive. Current gross rental yields are around 3.5% for smaller units and over 2.6% for other flat types, compared with an effective mortgage rate cap of 3.25% at most major banks.
Primary sales momentum
New-home sales remained strong in October, with around 1,700 units sold in the first 27 days. Full-month sales are expected to approach 2,000 units, marking the third consecutive month above the 1,000-unit level. This momentum is expected to continue into November.
Steady Q4 growth forecast
Looking ahead to the fourth quarter, rents are expected to rise further by around 1.3%, which would bring full-year rental growth to over 7%. Home prices are forecast to see a modest gain of about 1.5% in Q4, potentially bringing the full-year increase to between 8% and 10% — the strongest annual growth in nearly nine years.
Overall, market demand remains resilient. Supported by both end-user and investment demand, the property market is gradually stabilising, with prices expected to maintain a steady trend going forward. The full-year home-price forecast remains unchanged, projecting an increase of 8% to 10% for 2026, followed by an additional gain of 3% to 6% in 2027.
Source: The Standard
