Hong Kong home sales surge to two-year high, boosting overall transactions

Cheryl Arcibal

/ South China Morning Post (SCMP)

May 7, 2026 12:00 PM SGT

propertyeditor@edgeprop.sg

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An aerial view of housing in Tseung Kwan O, Hong Kong (Photo: Sam Tsang/South China Morning Post)

Hong Kong property transactions surged to a four-month high in April, while the value and volume of home sales hit their highest level in 24 months, according to the latest official data, underscoring the resilience of the city’s real estate sector amid uncertainties over interest rates and the US-Israel war on Iran.

A total of 8,692 transactions across homes, offices, shops, carparking spots and industrial spaces were concluded last month, up 12.3% from March’s 7,737 deals, according to data released on May 5 by the Land Registry. The total sales value rose 17% to about HK$72.9 billion (about $11.8 billion).

Sales of new and second-hand residential units climbed 16.7% m-o-m to 7,368 in April, the highest since April 2024 when 8,551 units were sold, the data showed. The sales value in April increased about 15.4% over March to HK$63.67 billion.

“The number of new home sales registrations has rebounded significantly, coupled with stable performance in the secondary market and commercial and industrial properties, resulting in a continued boom in the market,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties.

Given the strong sales of new homes in recent weeks, Chan estimated that primary residential transactions in May could exceed 4,300, boosting overall property deals to about 8,730.

A steady recovery in the city’s residential market was spurring a wider recovery for the city’s office and retail segments, according to Morgan Stanley.

On May 4, the US investment bank upgraded its forecast for the city’s home prices to a 12% increase this year from 10% previously, and anticipated another 5% rise in 2027, it said in a report.

Morgan Stanley added that the office segment was likely to see some relief with Central district poised to command rent increases of 5% from the previous estimate of 3%.

Retail rents were tipped to turn positive by year-end but would still likely log a yearly decline of 3%, compared with a 10% drop in 2025.

Last week, the Hong Kong Monetary Authority reiterated its warning over the uncertain direction of interest rates amid ongoing tensions in the Middle East that have disrupted oil supplies across the world.

The city’s de facto central bank said US interest-rate movements were affected by the conflict in Iran, which had led to higher oil prices and thereby impacted consumer prices.

Despite a ceasefire since last month, analysts have forecast that the war would reduce the chances of a rate cut this year. Hong Kong’s monetary policy moves in lockstep with the US to maintain the local currency’s peg to the dollar.

Morningstar is now expecting a single rate cut this year instead of two, while JPMorgan Chase forecast a rate pause over the next four quarters.

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