The luxury, prime residential sector of Hong Kong's property market is expected to outperform the overall property market in Hong Kong this year, this is predominately driven by increased demand for high specification properties from overseas property investors, primarily from the Chinese mainland. It's expected that this trend will continue for some time with demand for luxury properties in prime residential areas throughout Hong Kong far outstripping supply.

The widening gap between the specification of luxury homes and more regular Hong Kong apartments and housing has grow dramatically since 1997 with a huge difference in buying power between the wealthiest residents in Hong Kong and the middle income earners.

Away from the prime residential sector the property market is expected to be slower this year with demand down 15-20% on the period between 2000 and 2005