S&P Global released a report forecasting that Hong Kong home prices will elevate by a further 3-5% in the remainder of this year, driving full-year growth to 8-10%. It also estimated that home prices will be flat to grow by up to 3% in 2027.

S&P Global noted that Hong Kong's residential market is clearly cyclical, with land bidding typically more aggressive during upcycles, and expected this recovery to be relatively mild.

In addition, investment capital may support stronger-than-expected gains in Hong Kong home prices, as investors accounted for about 30% of total purchases in recently launched new projects.

Property transaction volumes have also rebounded. Primary market transactions recovered to 20,500 last year, and the agency expected volumes to advance further this year. However, transactions may ebb back to 18,000 next year as pent-up demand is gradually absorbed.

S&P Global believed that Hong Kong's residential market may enter a phase of moderate recovery over the next two years. The traditional supply-demand imbalance may not be as pronounced as in the past, with ample new private housing supply expected over the next 3-4 years, alongside increasing subsidized housing supply.

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