Hong Kong: Hong Kong’s residential property market lost some momentum in July, with home prices declining for the first time since March 2025. The latest fall came amid pressure from weaker stock markets and tighter investment restrictions in mainland China, which affected buying activity.
Despite the monthly decline, Hong Kong’s residential property prices have gained 7.3% during the first seven months of 2026 and remain 12.8% above their March 2025 low
Market Faces Fresh Pressure
Demand for residential properties has come under renewed pressure following a correction in equity markets. Tighter restrictions imposed by China on outbound investment have also weighed on property buying activity.
However, the Hong Kong housing market has continued to receive support from improving market sentiment, strong stock market performance and steady demand from a growing number of mainland Chinese professionals.
Lower Housing Oversupply Offers Support
An easing oversupply of residential properties has also provided some support to the market. The improvement in supply-demand conditions has helped the sector recover despite continued affordability concerns.
Hong Kong Housing Remains Highly Unaffordable
Hong Kong continues to rank among the world’s least affordable housing markets. Residential property prices recorded their first annual increase last year after falling by nearly 30% from their 2021 peak.
The July decline therefore marks a setback in the recent recovery, although property prices remain significantly above their March 2025 low.