Mainland Chinese homebuyers are continuing to play a pivotal role in sustaining demand within Hong Kong’s luxury real estate sector, even as some local investors look to exit the market by offering significant discounts. A notable recent transaction highlights this trend: a 6,071 square foot detached unit in the upscale Pokfulam 138 development was purchased for HK$300 million (US$38.5 million). This equates to approximately HK$50,000 per square foot.
The property is located in Pok Fu Lam, one of the most sought-after residential districts in the city, and the transaction was officially recorded in the Land Registry. The buyer, Qiu Jianlin, is the chairman of Zhejiang Hengyi Group, a company known for its operations in the petrochemical and chemical fibre raw materials industries. His acquisition reflects the ongoing trend of affluent mainland Chinese individuals investing in Hong Kong’s high-end property market.
According to property experts, this sustained demand from mainland buyers is helping to buoy a sector that might otherwise be weighed down by local sell-offs. Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank, noted that current market momentum is showing improvement compared to the previous year. He attributes this in part to a gradual decline in interest rates, which has enhanced purchasing power and encouraged more high-value transactions.
While geopolitical uncertainties, including trade tensions and tariffs, remain in the background, they have not significantly dampened enthusiasm among wealthy mainland investors. These buyers often view Hong Kong’s luxury real estate as a stable asset class and a strategic diversification of their portfolios.
Conversely, some local owners are offloading their properties, potentially reacting to economic headwinds or reassessing their investment strategies. Many are offering units at reduced prices to expedite sales, creating opportunities for buyers with available capital to secure prestigious addresses at relatively attractive rates.
The interplay between mainland demand and local supply continues to shape Hong Kong’s prime property landscape. With interest rates easing and confidence among mainland investors remaining strong, the luxury segment is likely to maintain a steady level of activity, supported by both individual and institutional buyers seeking long-term value in one of Asia’s most competitive real estate markets.
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