Since the British colonisation of Hong Kong in 1841 after the First Opium War, Hong Kong has grown from a stony outcrop on the southern coast of China to a territory whose property prices are among the highest in the world. The territory has a land mass of 1,111 km² (429 sq mi). According to government figures as at 2018, most of the land in Hong Kong is woodland, shrubland and grassland – much of which designated as country parks such as Lion Rock, Plover Cove Country Park and Sai Kung East Country Park, and only approximately 25% of the land mass out of the total territory is classed as "built-up". Most of the 7.3 million people in Hong Kong inhabit an area measuring 78 km² (30 sq mi). Excluding rural settlement housing, which represents 7% of the city's total domestic households, the remainder of the population is effectively squeezed into an area of 42 km² (16 sq mi). Property developers play a direct role in housing in Hong Kong, including the hoarding of approximately 1,000 hectares (2,500 acres) of agricultural land which could otherwise be used for housing.

Development in Hong Kong has historically been dominated by a cartel of five families, who now count themselves among the richest in the former colony. The developers share similar cost structures and advantages, and settle competition at land auctions by collusive bidding. Similarly, in residential sales, project metrics are equally predictable because the small circle of architects and banks means secrets are difficult to keep for long. They refrain from official price-cutting, although they may offer discounts, cash rebates or other inducements to the buying public. The orderly competition lowers operating risk and ensures lucrative returns.

Property developers are major landlords of residential, retail and office space in the territory, engaged in all aspects of property development, construction, property investment and management. Most hold sizeable construction land banks, such as Henderson Land, Sun Hung Kai Properties, New World Development and Cheung Kong, which hold between them over 10 square kilometres (3.9 sq mi) in the New Territories. Developers' returns have been reinvested into other business sectors such as utilities, which had the benefit of being stable and highly cash-generative, and often had significant real estate of their own. Leading conglomerate Cheung Kong Holdings, controlled by Li Ka-shing, is the foremost port operator, and also has significant retail presence within the territory in form of hotels, telecommunications, retail stores – supermarkets (ParknShop), home appliances (Fortress) and cosmetics chains (Watsons).

In recent years, Private equity real estate firms such as Gaw Capital and Phoenix Property Investors have also been increasing their holdings in Hong Kong real estate.

Sun Hung Kai is the largest real estate company in Hong Kong by market capitalisation. According to 2012 estimates by Barclays Capital, Sun Hung Kai, Cheung Kong and Henderson Land Development together provide an estimated 54 percent of the 20,398 private housing units to be launched in Hong Kong as at 2012.

Hong Kong-based consolidated turnover figures and reference periods in parentheses. ('Interim' indicates 6 months' figures)

The leaders of the various development firms are public figures whose opinions are regularly solicited by the media. Real Estate Developers Association (REDA), the industry body representing the developers established in 1965, has had only 3 chairmen since its inception. It was headed by Stanley Ho for 25 years until he stepped down in 2011, to be replaced by former Swire Properties managing director, Keith Kerr. Four of the richest people in Hong Kong (with Raymond and Thomas Kwok of Sun Hung Kai counting as one) according to Forbes – Li Ka-shing (Cheung Kong), the Kwok brothers, Lee Shau-kee (Henderson Land Development), and Cheng Yu-tung (New World Development) – are vice chairmen.

According to an analysis by the South China Morning Post, 12 major property conglomerates directly speak for at least 64 seats on the 1,200-member committee that selects the Chief executive. Through interests other than property, they have influence on many more seats, such as transportation.