Hong Kong home prices grew for a 12th month in May, extending the longest winning streak since 2018, a sign that the residential market recovery is taking hold.

The price index for private domestic homes rose 1.4 percent in May from a month earlier, according to figures released by the Rating and Valuation Department on Friday.

The gauge also climbed 12 percent from a year earlier.

The special administrative region has seen home sales rebound in recent months, thanks largely to buyers from the Chinese mainland. Many of them are highly educated, affluent immigrants attracted by the city’s low taxes and expanded visa options to seek opportunities after the pandemic.

That demand has helped Hong Kong emerge from a prolonged housing slump, with prices rising for the first time in four years in 2025.

Knight Frank expects the city to log as many as 80,000 home transactions this year, the most since 2012.