A tale of two markets: Hong Kong property prices stabilise as mainland China slump drags on
Hong Kong is drawing cautious interest from buyers, while markets such as Shenzhen remain weighed down by persistent price declines
As the mainland Chinese housing downturn drags on, Hong Kong’s market is showing early signs of stabilising, reshaping buyer sentiment and exposing a widening divergence across southern China’s property landscape.
Ming, a 28-year-old financial professional, moved into his new 320 sq ft one-bedroom flat in Yau Tong in May. He bought the unit a year earlier for HK$4.8 million (US$617,000), taking advantage of discounts offered on later batches of new launches.
“I was lucky I didn’t buy the first batch,” he said. “The later ones were cheaper.”
Like many recent buyers in Hong Kong, Ming was motivated not by expectations of quick gains, but by a belief that prices may not fall much further after years of declines. Mortgage costs have eased, developers have cut prices to clear inventory, and the market is increasingly seen as approaching a floor.
“No one can predict the market,” Ming said. “I thought prices would fall at most 10 per cent. I needed a place to live, and the mortgage was manageable.”
His decision reflects a shift among Hong Kong buyers from fear-driven paralysis to cautious necessity after a downturn that began in late 2021.