Mainland buyers are not just returning to Hong Kong’s property market — they’re reshaping it around higher-end homes

Mainland buyers now account for approximately 35% of total primary market sales by value in Hong Kong, a shift that is redefining the trajectory of the city’s housing recovery. Their spending on new homes reached HK$24.7 billion in the first quarter, outpacing purchases in the secondary market by 36.7%. This preference for higher-end developments is helping drive a broader resurgence in developer activity and pricing momentum.

Transactions involving mainland buyers rose 53% year-on-year to 3,882 units across both markets, according to Midland Realty, which analyzed Land Registry data using Putonghua pinyin names. The total value of those deals jumped 93% to HK$42.7 billion (US$5.5 billion). While some buyers may hold Hong Kong permanent residency, the pattern reflects a strategic pivot toward ownership among new arrivals, many of whom are transitioning from renters to homeowners.

The surge coincided with a rebound in overall primary market activity. New-home transactions climbed to 6,284 units in the quarter — the highest first-quarter figure in over a decade. By value, new-home sales rose 21% quarter-on-quarter to HK$70.8 billion, signaling strong demand despite high prices. A stronger yuan, recovering home values and relatively attractive rental yields have all contributed to renewed interest, according to Midland analyst Benny Sham.