Media365
The recovery in Hong Kong’s property market has begun attracting overseas investors back to the sector, with the Hang Seng Properties Index rising more than 20 per cent this year.
International investors, who have had limited exposure to Hong Kong property stocks over the past two to three years, had begun revisiting the sector and adding positions since the start of 2026, according to Citi.
At a recent global investor conference hosted by the US bank, participants said they were showing greater interest in Hong Kong property than in mainland China’s housing sector, which had been in decline for five consecutive years with little sign of a turnaround.
“[Investors] agreed with us on the home price upcycle [in Hong Kong] – the key question now is stock selection,” Citi said in a report released on Wednesday.
Investors broadly agreed that a housing price upcycle was under way, supported by improving supply-demand dynamics. They said they intended to increase exposure to developer stocks while exploring opportunities to rotate into laggards, according to Citi.
The shift in sentiment comes as Hong Kong home sales strengthened in early 2026. Land Registry data showed 6,669 residential agreements were registered in February, up 17.6 per cent from the previous month, with total transaction value reaching HK$57.6 billion (US$7.4 billion).
