BUSINESS

Hong Kong Property Deals Hit Four-Year High on Hopes of Rate Cuts and Buyer Incentives

Published: Sep. 4, 2025 4:13 a.m. GMT+8

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The floor plan for a flat at the Deep Water Pavilia project, developed by New World Development Co., in Hong Kong, on June. 7, 2025. Photo: Bloomberg

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 secondhand homes as well as commercial units — between January and August, up 12% from a year earlier. Residential sales alone reached 42,379, a nearly 10% increase, both marking the highest levels since 2021.

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Hong Kong’s property market saw over 50,000 transactions in January–August 2025, up 12% year-on-year, with residential sales rising nearly 10%.
Drivers included expectations of US Fed rate cuts, rental growth, and tax reductions, notably a stamp duty cut for properties under HK$4 million.
Market cooled in August with transactions down 10% from July, but overall sentiment and resilience remain strong, awaiting potential policy support.

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Who’s Who

Midland Holdings: Midland Holdings is a real estate brokerage firm. Analysts at Midland Holdings state that the surge in Hong Kong's property market in the first eight months of 2025 was driven by expectations of US Federal Reserve rate cuts, sustained rental growth, and favorable tax policies.

Centaline Property: Centaline Property is mentioned through its Senior Associate Director, Yeung Ming-yee. Yeung attributed a slowdown in Hong Kong's property market in August to capital outflows after the Hong Kong dollar hit its weak-side convertibility guarantee and extreme weather impacting home viewings.

Ricacorp Properties: Ricacorp Properties' head of research, Chan Hoi-chiu, commented on the Hong Kong property market's resilience. He noted that transactions have consistently stayed within the 6,500 to 7,000 range for six months, indicating strong underlying support despite recent cooling trends.

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What Happened When

First half of 2025：: Hong Kong regained the global lead in IPO fundraising.

January 2025 - August 2025：: Hong Kong's property market recorded 50,522 property deals, up 12% from a year earlier, with residential sales reaching 42,379.

July 2025：: Rents rose for an eighth straight month, and the residential rental index hit a six-year high; the Hang Seng Index briefly topped 25,000, its strongest since February 2022.

Mid-July 2025 - early August 2025：: Contracts reflected in August's transaction slowdown were signed; this period was marked by capital outflows after the Hong Kong dollar hit the weak-side convertibility guarantee and extreme weather disruptions.

August 2025：: Monthly property transactions fell 10% from July to 6,462; overall deal value dropped 12.5% to HK$47.8 billion; new private home sales slipped 5.1% to 1,774 units; secondhand deals fell 10% to 3,294.