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Hong Kong Investment Market - Q2 2026

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Market Divergence Deepens in Hong Kong's Investment Sector, Unlocking Opportunities in Distressed Assets

  • Non-Residential Investment Rebounds: H1 2026 transactions above HKD 50 million reached HKD 22.3 billion, up 120% YoY, led by offices (67.6%) and hotels (21.6%).
  • Commercial Prices Remain Under Pressure: Grade A office and prime street shop prices remain 49% and 65% below their respective peaks, while some receivership assets cleared at 35% to 56% discounts.
  • Office Market Shows Early Stabilisation: Investment interest is returning to well-located core properties, while Grade A office vacancy fell 0.4 percentage points QoQ to 14.8% in Q2 2026.
  • Mainland Buyers Support Residential Demand: Mainland buyers recorded HKD 107.1 billion of purchases in H1 2026, while HKD 100 million-plus luxury transactions rose 91% YoY to 134 deals.
  • Hotels and Student Housing Remain Resilient: Hotel room rates recovered to 98% of their 2018 peak, while a 72,000-bed student accommodation shortfall continues to support conversion and investment demand.

Q2 2026 marks an inflection: non-residential investment surged 120% year-on-year as cash-rich buyers moved on distressed pricing, while residential stayed resilient but now faces a slower, more moderate next leg.

Jack Tong, Savills Research & Consultancy
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