Valuer Insights
Business Insights | Turning Point for Hong Kong’s Property Market?
July 31, 2025
The first half of the year saw strong performance in primary residential market, with approximately 9,301 new home transactions, reaching a 6-year high for the same period following the approximately 12,466 transactions recorded in the first half of 2019. As compared to the 9,391 transactions in the same period last year, the market sees only a slight decrease of about 1% in the first half of the year. All these reflect market resilience and buyer interest, ultimately a pathway to recovery.
The Kowloon district experienced significant growth in transaction and consideration, transactions rising from 399 to 711 by 78.2%, and the consideration rising from HK$5.65 billion in May to HK$22.78 billion, accounting for 65.6% of total consideration. Notably, the new development in Kai Tak, The Knightsbridge contributed HK$725.372 million in consideration through 16 transactions, with an average price exceeding HK$45 million.
Hong Kong Island is also a driver with transactions rising from 84 to 127 by 51.2% in June, and the consideration rising from HK$1.87 billion in May to HK$4.41 billion. Notably, the new development in Wong Chuk Hang, The Southside (La Montagne), Blue Coast II and Deep Water Pavilia contributed HK$2.468 billion in consideration through 92 transactions.
The New Territories recorded 1,295 transactions, an increase of approximately 4.4% compared to the 1,184 transactions in May and consideration slightly growth by 9.4% to HK$7.54 billion.
As for the second half of the year, developers will continue to actively launch new projects. 67 new projects with a total of 23,000 units will be available for sale, with Kai Tak continuing to be a focal point.
Hong Kong residential market will continue stimulated by the government's stamp duty concession policy this year, coupled with the effect of lower mortgage payments than rental costs, the trading atmosphere for smaller-priced properties has been active, driving the overall volume of secondary market transactions. However, this has also led to a decrease in the average transaction price for the first half of this year, down to HK$7.68 million, a drop of nearly 6.3% compared to HK$8.2 million in the same period last year. Currently, the average price of secondary residential properties is at an eight-year low and has fallen over 24% from the peak of HK$8.54 million in 2021, reflecting that a significant amount of purchasing power has shifted towards smaller-priced properties.
In the first half of the year, Hong Kong’s property market showed clear signs of recovery, with both the primary and secondary markets seeing an increase in transactions. The primary market continued to lead the way, while the secondary market also benefited from the “cheaper to buy than rent” trend and the government's stamp duty reduction measures. However, the residential market is also undergoing some price adjustments, particularly in the secondary market, reflecting shifts in buyer demand. The upcoming Policy Address in September, along with the economic outlook and interest rate trends, will be key factors in determining whether the recovery in the housing market can be sustained in the second half of the year.
Source: Land Registry
Residential Market Primarily Driven By New Home Sales
According to the latest data from the Land Registry, the market activities are significantly rebounding and primarily driven by new home sales. The number of residential property registrations in June (including private primary, secondary, and secondary public sectors) reached 6,273, an increase of approximately 14.8% compared to the 5,462 registrations in May, reaching a seven-month high. In June, the primary market reached approximately 2,133, higher than May’s 1,667 by 28%.The Kowloon district experienced significant growth in transaction and consideration, transactions rising from 399 to 711 by 78.2%, and the consideration rising from HK$5.65 billion in May to HK$22.78 billion, accounting for 65.6% of total consideration. Notably, the new development in Kai Tak, The Knightsbridge contributed HK$725.372 million in consideration through 16 transactions, with an average price exceeding HK$45 million.
Hong Kong Island is also a driver with transactions rising from 84 to 127 by 51.2% in June, and the consideration rising from HK$1.87 billion in May to HK$4.41 billion. Notably, the new development in Wong Chuk Hang, The Southside (La Montagne), Blue Coast II and Deep Water Pavilia contributed HK$2.468 billion in consideration through 92 transactions.
The New Territories recorded 1,295 transactions, an increase of approximately 4.4% compared to the 1,184 transactions in May and consideration slightly growth by 9.4% to HK$7.54 billion.
As for the second half of the year, developers will continue to actively launch new projects. 67 new projects with a total of 23,000 units will be available for sale, with Kai Tak continuing to be a focal point.
Source: Land Registry
Secondary Market on Upward Trend
In the secondary market, there were 4,140 transactions in June higher than May’s 3,795 by 9.1%. The total consideration of June was HK$26.36 billion, a 6.3% increase from May's HK$24.8 billion. The Kowloon district experienced significant growth in transaction and consideration, transactions rising from1,870 to 2,102 by 13.5%, and the consideration rising from HK$10.2 billion in May to HK$11.58 billion, accounting for 43.9% of total consideration.Source: Land Registry
In the first half of 2025, a total of six secondary development recorded over 100 transactions, collectively 1,064 transactions. Among them, Kingswood Villas topped the list with 225 transactions, Mei Foo Sun Chuen and Taikoo Shing in Quarry Bay recorded 196 and 190 transactions respectively. The remaining development was City One Shatin (153 cases), and Whampoa Garden (152 cases) and Discovery Bay (148 cases).Hong Kong residential market will continue stimulated by the government's stamp duty concession policy this year, coupled with the effect of lower mortgage payments than rental costs, the trading atmosphere for smaller-priced properties has been active, driving the overall volume of secondary market transactions. However, this has also led to a decrease in the average transaction price for the first half of this year, down to HK$7.68 million, a drop of nearly 6.3% compared to HK$8.2 million in the same period last year. Currently, the average price of secondary residential properties is at an eight-year low and has fallen over 24% from the peak of HK$8.54 million in 2021, reflecting that a significant amount of purchasing power has shifted towards smaller-priced properties.
In the first half of the year, Hong Kong’s property market showed clear signs of recovery, with both the primary and secondary markets seeing an increase in transactions. The primary market continued to lead the way, while the secondary market also benefited from the “cheaper to buy than rent” trend and the government's stamp duty reduction measures. However, the residential market is also undergoing some price adjustments, particularly in the secondary market, reflecting shifts in buyer demand. The upcoming Policy Address in September, along with the economic outlook and interest rate trends, will be key factors in determining whether the recovery in the housing market can be sustained in the second half of the year.