Hong Kong property deals hit four-year high on hopes of rate cuts, buyer incentives
Land Registry data shows 50,522 deals between January and August, up 12% from a year earlier
HONG Kong’s property market recorded its busiest start in four years, with more than 50,000 transactions registered in the first eight months of 2025, even as monthly activity cooled in August.
Data from the Land Registry showed 50,522 property deals – spanning new and second-hand homes as well as commercial units – between January and August, up 12 per cent from a year earlier. Residential sales alone reached 42,379, a nearly 10 per cent increase, both marking the highest levels since 2021.
Analysts at real estate brokerage Midland Holdings said the surge was fuelled by a mix of factors: expectations that the US Federal Reserve will soon cut rates, sustained rental growth, and more favourable tax policies.
Rents rose for an eighth straight month in July, with Hong Kong’s residential rental index hitting a six-year high, prompting some tenants to consider purchasing homes. At the same time, stamp duty on properties priced under HK$4 million (S$660,980) was cut to just HK$100, easing entry costs for first-time buyers.
The broader financial environment also bolstered sentiment. The Hang Seng Index briefly topped 25,000 in July, its strongest level since February 2022, while Hong Kong regained the global lead in initial public offering fundraising during the first half of the year.
Still, the market showed signs of cooling in August. Transactions fell 10 per cent from July to 6,462, while the overall value of deals dropped 12.5 per cent to HK$47.8 billion.
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Yeung Ming-yee, senior associate director at Centaline Property, said the slowdown reflected contracts signed between mid-July and early August, a period marked by capital outflows after the Hong Kong dollar hit the weak-side convertibility guarantee and by bouts of extreme weather that disrupted home viewings.
Sales of new private homes slipped 5.1 per cent to 1,774 units in August, while second-hand deals fell more sharply, down 10 per cent to 3,294. Analysts noted that strong sales in earlier months had already absorbed much of the attractive stock, while promotions of new projects diverted some demand away from the resale market.
Despite the dip, industry leaders said the market remains resilient.
“Transactions have stayed within the 6,500-to-7,000 range for six months, showing solid support,” said Ricacorp Properties head of research Chan Hoi-chiu.
Investor sentiment, however, remains upbeat. With the Hong Kong government set to deliver its policy address in mid-September, expectations of property-friendly measures are fuelling optimism that momentum will return in the fall. CAIXIN GLOBAL
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