Home prices in Hong Kong rose to their highest levels in two-and-a-half years in April, with a top industry figure attributing it to rising buyers' confidence and ample capital inflows, along with easing geopolitical tensions.

Figures released by the Rating and Valuation Department on Wednesday showed the city's official home price index rose for the 11th consecutive month to 316.6, the highest since October 2023.

April's figure was up 10.5 percent year on year, whereas the pace of growth on a monthly basis halved to 0.9 percent.

Eddie Kwok, executive director of valuation and advisory services at property consultancy firm CBRE Hong Kong, said the increase came on the back of rising confidence among buyers, with strong transaction momentum seen in the first-hand market.

"The first-hand residential market is exhibiting robust absorption rates. Sustained demand has shifted pricing power back to developers, as seen in the recent price increases in their new project launches," Kwok said.

He also pointed to the city's steady and ample capital inflows that continued to support the residential market while boosting overall economic activities.

Kwok added that investors saw easing threats from ongoing geopolitical conflicts as the risks have largely been factored in.

He believes home prices would continue to grow, and rise by between 8 and 10 percent this year.

Prices rose by 5.7 percent in the first four months of the year after climbing 3.6 percent in 2025. Still, the index remained around 20 percent below its all-time high of 398.1 in September 2021.

Meanwhile, rents in April once again scaled new heights, with the rental index reaching 203.4.

The figure, which was almost 5 percent higher from the same period a year ago, has gone up for the sixth straight month.



Edited by Edmond Fong