Savills

Publication

Hong Kong Investment - May 2026

Article

Contacts & Related Research

 

Hong Kong Property Investment Market Continues to Polarise, with Residential and Education‑Related Assets Driving Q1 Investment Sentiment

  • Selective Recovery in Investment Market: Q1 2026 saw uneven recovery, with residential strength but continued weakness in commercial sectors.
  • Residential Driven by Mainland Buyers: Transactions reached 18,654, with Mainland buyers accounting for over 20% and dominating luxury deals.
  • Office and Hotels Lead Large Transactions: Offices made up 62.1% of major deals, followed by hotels at 26.8%.
  • Student Housing Gains Investment Momentum: Rising education demand is driving conversions, with transaction value increasing sharply since 2024.

The first quarter of 2026 reflects a further deepening of polarisation in Hong Kong’s property market. Residential and education‑related assets are attracting fresh capital inflows, while the broader commercial property sector continues to rely more heavily on selective end‑users and opportunistic investors. Against the backdrop of improving local liquidity and a notable correction in asset prices, assets located in core areas with conversion potential and strong income visibility are expected to remain the primary focus of market capital.

Jack Tong, Savills Research & Consultancy
Read more