Hong Kong’s luxury property market has been on a strong rebound, with the latest example being the premium residential project Deep Water Pavilia, which alone recorded over HK$7 billion ($892 million) in transactions in just one month.

The project, located in Wong Chuk Hang on the south side of Hong Kong Island, has sold 369 apartments — over 82 percent of the total — in about a month, its developer announced on Tuesday.

The property offers flats ranging from two to four bedrooms, with prices from approximately HK$8.5 million to more than HK$40 million. Large-sized apartments with four bedrooms, under 1,300 square foot, have already sold out.

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The project’s strong sales have boosted first-hand home transactions in the area, as activity in the special administrative region's overall luxury property market also picked up in the first half of 2025, according to local real estate agency Midland Realty.

The agency reported that in the first six months of this year, transactions of first-hand luxury residences on Hong Kong Island valued at over HK$50 million reached 83, a 19 percent increase from 70 in the same period last year. On a half-yearly basis, the number is also a seven-year high since the first half of 2018, reflecting keen demand for super-luxury properties in the region, the agency added.

Areas such as The Peak, Mid-Levels and Deep Water Bay on Hong Kong Island are among the city’s most prestigious luxury home neighborhoods. A penthouse at Mount Nicholson in Mid-Levels was sold for HK$609 million in May, hitting a new high in price per square foot of about HK$144,415.

Jimmy Lee Chung-yin, the agency’s director for Hong Kong district, said the property market has improved with strengthened buyer purchasing power and an influx of capital due to the city’s strong stock market performance and robust initial public offering activity.

The SAR government’s efforts to attract more family offices, as well as its investment immigration scheme, have brought many wealthy people and considerable capital to the city, Lee added.

“This group of people has significant demand for properties in Hong Kong, especially for luxury properties, and have provided a boost to ultra-luxury property sales. It is projected that in the second half of the year, sales of first-hand properties on Hong Kong Island valued at over HK$50 million, will reach around 100,” he said.

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As of the end of June, Hong Kong’s New Capital Investment Entrant Scheme had received more than 1,500 applications, which is expected to bring around HK$46 billion in investment into the city.

Despite most of the current inbound investment being concentrated in stocks, funds and bonds, Wilson Chan Yuk-sing, head of properties at property investor Orion Land, said he believes capital will soon enter the property market if the stock market continues to improve.  

He added that with interbank offered rates expected to remain low and a clearer outlook on Sino-US relations, Hong Kong's residential and commercial markets are expected to bottom out in the coming months following the improved luxury housing market, which will “have a positive impact” on the economy.

Contact the writer at gabylin@chinadailyhk.com