Full Breakdown
Hong Kong’s Secondary Residential Market Cools as Buyers Adopt a Wait-and-See Stance
7/19/2026, 12:00:14 PM
Market Shift After Strong First Half
Hong Kong’s secondary residential market recorded 26,813 transactions worth HK$212.24 billion in the first half of the year, a 25.5 % rise in volume and a 34.1 % increase in value compared with the second half of the previous year. The Centa-City Leading Index rose 15 points to 160.77, indicating a marked warming. At the start of the second half, agents reported a sudden slowdown, with prospective viewings in North Point falling 10 % month-on-month and only two deals logged in early July at City One Sha Tin.
Transaction Volume and Price Trends
Despite the slowdown, the transacted price per saleable square foot at City One Sha Tin climbed to around HK$15,000, up from HK$13,000 at the beginning of the year. Investors who sold small units in City One Sha Tin in April and June realized a combined profit of HK$1.22 million, yet many have postponed re-entry, seeking at least a 10 % profit margin. Aggressive asking prices—such as a HK$4.15 million listing for a 380-sq-ft unit in Tsuen Wan Centre—have prompted buyers to pull back.
Buyer Caution and Investor Behavior
Buyers cite uncertainty stemming from Beijing’s crackdown on capital outflow, which has depressed the Hang Seng Index from 28,000 points at the end of January to just over 22,000 by June. Prospective purchasers are waiting for clearer price concessions before committing.
Official Outlook
Louis Chan, vice-chairman and CEO (residential) for Asia-Pacific at Centaline Property Agency, said the market is undergoing “technical consolidation” after a cumulative rise of nearly 20 % from March lows. He noted that talent-attraction schemes sustain strong rental demand, projecting a 5 % rise in residential rents and a 5-8 % increase in property prices for the second half of 2026.
Verbatim Quotes
- “The outlook for the property market seems rather uncertain,” — Fok, aviation professional
- “The stock market has fallen significantly – the Hang Seng Index dropped from 28,000 points at the end of January to just over 22,000 by the end of June,” — Fok
- “Buyers are concerned that the central government’s recent crackdown on capital outflow – which has already caused a slump in the stock market – might also spill over into the property market,” — Brian Choy, associate sales director, Century 21 Sunrise Property
- “I want to adopt a wait-and-see approach,” — Ng, investor
- “Overall property prices have risen significantly this year. I was worried I wouldn’t be able to afford a replacement home, so I had to raise the asking price. Otherwise, I feared I wouldn’t be able to buy back into the market.” — Anonymous owner.
