The property market has gradually stabilized recently. Last year’s 56,000 private residential transactions, mainland buyers accounted for 25% of the market share, with 14,000 total buyers. In January of this year, mainland buyers were even more active, with their share in first-hand properties showing an upward trend, especially in new developments in Kai Tak and the southern part of Hong Kong Island. However, local buyers were constrained by factors such as the sluggish local economy and decrease in job openings, and they showed more cautious about re-entering the property market. Once business closures and bankruptcy decelerate, the job openings will rebound. As a result, the property market will be fully recovery.
More Hong Kong residents have opted to head north for cross-border consumption. The local F&B sector is facing a significant 
loss of its customer base. In addition to higher rents and expensive costs, it is common for restaurants to operate at a loss. Last year, over one hundred restaurants closed, including many well-known chain stores and renowned restaurants. These enormous numbers of closures have been leading to a continuous increase in vacant spaces, causing a prolonged slump in rents and prices. For the recovery of the F&B sector, rents must be further reduced, service standards must be improved, and menu price must be lowered; otherwise, the wave of closures will not end soon.
Furthermore, the number of job openings fell by 17% in 2025, while the number of job seekers increased by 58%, significantly raising the difficulty of getting a job. Last year, job openings in the retail, hotel, and tourism industries dropped by 90%, while those in market development and finance industry also descended by 50%. The latest survey showed that 70% of Businesses enterprises will reduce hiring entry-level positions over the next three years, which will worsen the employment market faced by university graduates. Currently, even graduates from the University of Hong Kong and the Chinese University of Hong Kong are hard to find a permanent job; some fresh graduates only find a full-time job one year after graduation.
New immigrants to Hong Kong on admission Scheme for Mainland Talents and Professionals' visa also face difficulties finding jobs. Indeed, many of them only find low basic salary insurance-related positions. Recent statistics showed that half of Talents and Professionals’ visa holders did not renew their visas upon expiration; that phenomenon showed the widespread and severe employment difficulties.
About the wave of bankruptcies, the Official Receiver’s office recently announced that the number of personal bankruptcies reached 10,021 last year, a 9% increase year-on-year, reaching a 14-year high. The number of companies undergoing compulsory liquidation increased by 12% last year, reaching 831, a 20-year high. The number of companies and individuals going bankrupt this year is expected to remain high. Due to the pressure from the credit risk management department of the banks, there will be a significant increase in bankruptcies of well-known investors. Many insolvent companies are still struggling to survive; they will continue to sell investment properties at discounted prices to avoid bankruptcy.
If the wave of bankruptcies cannot be resolved, unemployment in the catering and other industries will inevitably rise, and the business climate will be difficult to improve. The trend of companies' headcount reduction must also be addressed, as it reflects the local economic transformation. Coupled with the rise of AI, the trend of slowing recruitment is normal. The government must improve the investment environment and support technological development to increase job employment opportunities. Only with improved hiring sentiment and the subsiding business closures will the property market fully recover.
