• Investment Market Remains in a Selective Recovery Phase: Hong Kong’s property investment market did not experience a broad‑based rebound in the first quarter of 2026, but continued to show increasing polarisation. Residential prices recorded growth, while values across commercial property sectors remained under pressure. The report highlights that capital has mainly flowed into core and more resilient assets, reflecting investors’ stronger focus on asset repricing opportunities, conversion potential, and long‑term capital appreciation.
  
  
• Residential Sector Outperforms, with Mainland Buyers Supporting the Luxury Market: The primary residential market recorded 18,654 transactions during the quarter, with Mainland buyers accounting for more than 3,800 deals in the first three months, representing over 20% of total primary sales. In the ultra‑luxury segment, more than half of the 58 transactions priced above HKD 100 million involved Mainland buyers, underscoring the continued importance of cross‑border capital in supporting the luxury residential market.
  
  
• Office and Hotel Assets Dominate Non‑Residential Investment: In the first quarter of 2026, office assets accounted for approximately 62.1% of non‑residential transactions valued above HKD 50 million, while hotels represented around 26.8%, making them the two main investment categories. Core Grade A office buildings and hotels, particularly in prime locations such as Central, continued to attract owner‑occupiers, private capital and strategic buyers.
  
  
• Education and Student Accommodation Emerge as a New Investment Theme: The report notes that education‑related assets and student accommodation have become sources of structural demand, driving increased acquisition of office buildings and the conversion of hotels into student housing. Transaction value for related hotel and residential assets rose from HKD 2.27 billion in 2024–2025 to HKD 6.05 billion, while the first three months of 2026 have already recorded HKD 3.35 billion in transactions, highlighting student accommodation and conversion assets as key market focal points.

Mr. Jack Tong, Director, Research & Consultancy of Savills commented, “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.”         

Mr. Peter Yuen, Managing Director, Investment & Sales of Savills said, “As we enter 2026, investors are expected to adopt a more targeted and selective approach, rather than broadly pursuing a market‑wide rebound. We anticipate that core office buildings, prime residential assets, hotels with potential for conversion into student accommodation, and assets located in prime locations with clear upgrade or redevelopment potential will continue to attract capital and emerge as the stronger‑performing segments in the next phase of the market.”