Mainland Buyers Drive Surge in Hong Kong’s Ultra-Luxury Property Market
After several years of subdued activity, 2025 has emerged as a pivotal year for Hong Kong’s most coveted residential enclaves. A significant influx of mainland Chinese buyers has revitalized demand for ultra-luxury homes, particularly as property prices stabilized and transaction momentum carried into the new year. This renewed interest is most pronounced in The Peak and the Southern district, two exclusive, low-density neighbourhoods on opposite ends of Hong Kong Island.
Data indicates that mainland purchasers were responsible for approximately HK$16 billion (US$2.05 billion) worth of property transactions in these prime areas during 2025. This figure represents the overwhelming majority of ultra-high-end deals, underscoring the substantial influence of mainland capital at the apex of the Hong Kong property market. The analysis of transaction data relies on the identification of Putonghua pinyin names in Land Registry records, though it’s acknowledged that some individuals may also hold Hong Kong permanent residency.
A Resurgence in Prestigious Enclaves
The surge in mainland buyer activity signifies a dramatic turnaround for districts that experienced a notable slowdown in recent years. In 2025, The Peak and Southern district collectively recorded 174 primary and secondary market transactions, translating to a total deal value of HK$19.9 billion. This represents a substantial 21.2 per cent increase from the previous year and marks the highest annual turnover since 2021, a period that saw transaction values peak at HK$26.1 billion during a prior market high.
Big-Ticket Deals Fuel the Rebound
The significant rebound in market value was largely propelled by substantial transactions. The two districts witnessed 58 deals exceeding HK$100 million in 2025, nearly doubling the number recorded in 2024. Critically, mainland capital was the driving force behind 80 per cent of these nine-figure deals, solidifying their dominant position in the ultra-luxury segment.
This renewed buying spree coincides with the ongoing challenges within mainland China’s property sector. Experts suggest that Hong Kong’s super-luxury homes, prized for their inherent scarcity and perceived value-preserving qualities, have become a crucial safe-haven for mainland capital seeking stability and a hedge against domestic market uncertainties.
Primary Market Shines
Primary market properties, often preferred by mainland buyers due to their contemporary designs and more straightforward ownership structures, have taken centre stage. In 2025, The Peak and Southern district saw a remarkable 61.5 per cent year-on-year increase in first-hand luxury home transactions, reaching 42 deals. This figure represents the highest level observed in nine years.
The primary market’s performance was significantly boosted by record-breaking prices, including a HK$2.2 billion sale at the ultra-luxury development 6 Deep Water Bay Road. This single transaction contributed to the primary market’s total transaction value reaching HK$8.89 billion, an increase of approximately 50 per cent from the prior year and the highest since 2018.
The robust momentum has extended into the early months of 2026. In a notable early-year transaction on January 2, a single mainland buyer acquired six units spread across three floors at The 1 South Bay Close, a recently completed luxury residential project in the Southern district, for an estimated HK$860 million.
Secondary Market Activity Picks Up
The secondary market, which had faced considerable pressure in recent years due to weaker economic conditions and elevated interest rates, has also experienced a revival in activity. These pressures had prompted some established local families, many with significant investments in the commercial property sector, to divest valuable residential assets.
A prominent example of this trend was the sale of 1 Gough Hill Road. This prestigious property, formerly owned by knitwear trader Law Kin-sang and associated parties, was sold in August 2025 for HK$1.1 billion to a mainland purchaser. The sale price equated to an impressive HK$95,018 per square foot. The mansion itself is a substantial residence, spanning 11,451 square feet and featuring five bedrooms, five bathrooms, a sprawling 10,357 square foot garden, a 3,035 square foot rooftop terrace, and a parking space larger than the average Hong Kong home.
Further evidence of mainland interest in the secondary market emerged in November when a buyer sharing the name of veteran mainland investor Xu Liusheng purchased a unit in the affluent Southern district for HK$342 million. This Deep Water Bay property, offering 3,927 square feet of saleable area, was transacted at HK$87,089 per square foot. Notably, Xu’s acquisition price was HK$10 million less than the HK$352 million paid by the previous owner, Chen Sze-lok, in 2015.
Market observers note that mainland buyers are increasingly favouring the Southern district over The Peak, citing practical advantages such as more accessible driving conditions on the winding hillside roads.
Rental Market Indicators
The resurgence in property purchases has been mirrored in the rental market, which is often considered a leading indicator of underlying buying interest. In 2025, The Peak and Southern district collectively saw approximately 567 rental transactions, an increase of 9.2 per cent compared to 2024. Leases valued at HK$200,000 or more constituted a growing proportion of these rentals, suggesting a robust demand at the higher end of the rental spectrum.
Outlook for the Luxury Market
Looking ahead, analysts anticipate that several factors will continue to underpin demand for super-luxury homes. These include ongoing geopolitical uncertainties, a sustained influx of talent migrants into Hong Kong, and a strong performance in the stock market.
Centaline Property forecasts a 10 per cent rise in primary luxury home prices and gains of 5 per cent to 10 per cent in the secondary market, alongside steady rental growth. Midland Realty projects that The Peak and Southern district will surpass 200 deals in 2026, with the potential to even challenge the 300-deal mark, indicating sustained optimism for the high-end Hong Kong property market.
