Citi forecasts that Hong Kong's property market will continue its recovery in 2026 after emerging from its trough in 2025, with prices expected to rise by 3% and enter an upward cycle. The bank's top picks include Hysan Development (00014), Hang Lung Properties (00101), Sun Hung Kai Properties (00016), Henderson Land (00012), and Link REIT (00823).

Citi notes that Hong Kong's property prices are entering an upcycle, supported by improved new sales margins (currently 5%–9%) and potential upside in net asset values. In retail, luxury sales outperform the broader market, while the mass market has stabilized since May 2024, with steady recovery expected from the second half of 2026.

For office space, competition is anticipated to intensify in 2026 following record-high completions in 2025, though prime Grade-A offices in core districts remain resilient.

Additionally, listed developers are becoming leaner, with active capital recycling, reduced debt, lower capital expenditures, and financing costs—supporting cash flow for growth while maintaining stable dividends. Renewed investment appetite, smooth leadership transitions (including chairman/CEO changes), and new strategic initiatives further bolster optimism for Hong Kong's property sector.