Rising Demand for High-End Properties in Hong Kong
As property prices stabilize and rental rates continue to increase, affluent buyers are showing renewed interest in high-end homes. This trend is evident as Hong Kong property developers introduce new luxury properties to the market, attracting attention from wealthy investors.
Wharf Holdings recently launched a tender for three mansions at its ultra-luxury Plantation Road project on The Peak. This offering has become one of the most anticipated super-luxury home sales in 2025. It follows a series of high-value transactions that indicate a growing confidence among affluent buyers in the current market.
The three mansions available at the Plantation Road project have saleable areas ranging from 5,629 to 6,122 square feet. Notably, one of the units is the largest in the project’s first phase, featuring an expansive 4,430 square foot private garden and courtyard. These properties are designed to cater to those seeking exclusive living spaces with premium amenities.
Developers are encouraged by the improved market sentiment, which has led to increased activity in the luxury housing sector. While the overall housing market remains focused on mass-market flats, there has been a noticeable rebound in deals involving luxury homes priced above HK$50 million (US$6.4 million) in recent months.
In October alone, developers recorded 66 first-hand luxury transactions above this threshold. This number is roughly double that of September and represents the highest monthly tally in a year, according to Midland Realty. Over the first 10 months of the year, there were 322 such deals recorded.
On Christmas Eve, a unit at Hanison Construction Holdings’ Park College development in Kowloon City was sold for HK$150 million. This sale set a new price benchmark in the neighborhood. Another significant transaction occurred on the Southside, where National Electronics Holdings sold one of its seven detached houses at Tai Tam Road for HK$343 million, although this was at a discount compared to peak prices in 2021.
According to Alan Li, an agent at Habitat Property, a luxury real estate-focused firm, luxury second-hand homes—typically priced 20 to 40 per cent below the levels seen in 2021 and 2022—have mostly been absorbed. He noted that this shift is turning buyers’ attention toward primary luxury housing.
Li pointed out that a noticeable shift from renting to ownership has been observed. The October rental index for luxury units under classes D and E—which include properties with saleable areas of at least 1,076 square feet—rose 3.69 per cent, marking the highest level since November 2019, according to data from the Rating and Valuation Department.
While major developers are unlikely to reduce prices significantly, some, like New World Development, are expected to pursue quick sales opportunities in the luxury home market. Mainland Chinese buyers continue to dominate new luxury home sales this year, while a mix of local owners, mainland buyers, and expatriates are involved in the resale market, especially in core areas such as The Peak, Southside, and Mid-Levels.
Transactions involving properties with saleable areas of at least 1,076 square feet saw a decline of up to 22.7 per cent this year from their peak in October 2021, according to government data. However, the Price Index rose by 2.5 per cent in the first 10 months of the year.
Hong Kong’s luxury residential rentals are expected to climb another 3 to 5 per cent next year, driven by a growing number of returning Western expatriates and local professionals seeking high-end accommodation. According to Savills, this demand is likely to keep the luxury rental market active.
Habitat Property’s Li expressed confidence in the future of the luxury market, stating, “I expect this market to be active next year.” As the demand for high-end properties continues to grow, Hong Kong’s real estate landscape is evolving to meet the needs of affluent buyers.
