Hong Kong’s luxury property market is expected to maintain steady performance through the remainder of 2026, with transaction volumes continuing to rise but price increases remaining modest, according to industry analysts.

Data from Midland Realty shows a marked increase in sales of luxury properties priced above HK$50 million in both primary and secondary markets during the first half of the year. Primary market transactions totaled 296 units by the end of June, up 80.5 percent from 164 units in the same period last year. The total transaction value reached HK$30.33 billion, more than doubling from HK$15.06 billion a year earlier.

Notable transactions included actor and singer Eason Chan Yick-shun’s purchase of a Shouson Hill property for HK$182.53 million in June, as well as the acquisition of a luxury home in Stanley for HK$220 million by Mao Yuankai, president of Shanghai-listed Tibet Summit Resources.

Secondary market activity also saw significant growth, with 172 transactions recorded by midyear—an increase of 59.3 percent compared to 108 in the first half of 2025. The corresponding transaction value rose 76.9 percent to HK$19.21 billion from HK$10.86 billion the previous year.

Despite the surge in sales, market participants pointed out that buyers remain cautious about price escalations. Joseph Yan, senior principal district sales director at Centaline Property Agency, noted that sustained sales depend on sellers setting asking prices close to recent transaction levels. He said that aggressive price hikes, such as increasing a property’s value from HK$200 million to HK$250 million or HK$300 million, are unlikely to succeed under current market conditions.

Paul Cheung, regional sales director at Centaline, observed that buyers this year have shown a more proactive stance, with many eager to enter the luxury segment. He forecast that transaction volumes for high-end residences would hold steady in the third and fourth quarters, with price growth limited to roughly 1 to 2 percent. Cheung also highlighted that new luxury developments in established premium neighborhoods such as the Mid-Levels are expected to further stimulate market activity.

Other luxury precincts like The Peak and the Southern District are projected to experience stable sales volumes amid a shrinking inventory of available properties and tight supply conditions. John Fong, chief district sales director at Midland Realty, reported that these areas recorded 116 luxury transactions through June, reflecting a 52.6 percent year-on-year increase. The total value surged over 77.2 percent to HK$13.39 billion.

Fong also pointed to regulatory changes impacting demand, noting that stricter measures on capital outflows from mainland China have contributed to an overall decrease in Hong Kong’s property market transaction volumes. Nonetheless, the luxury segment remains resilient, supported by a steady flow of buyers and limited stock in prime locations.