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Chris Tsang

Hong Kong’s secondary residential market is expected to hit a turning point at the start of the second half of the year following a steep price increase during the six months to June, according to multiple local property agencies.
They cited the effects of Beijing’s crackdown on capital outflow, which has shaken Hong Kong’s stock market, as a contributing factor.
According to data from Centaline Property, the secondary residential market recorded 26,813 transactions totalling HK$212.24 billion (US$27.07 billion) in the first half of this year. The volume and total transaction value reached a five-year high, increasing by 25.5 per cent and 34.1 per cent respectively compared with the second half of last year.
The Centa-City Leading Index (CCL) – a frequently used benchmark showing general price trends in the secondary residential market provided by Centaline Property – rose by 15 points to 160.77 in the first half of the year, reflecting a marked warming of the secondary market.
However, real property agents across various districts in Hong Kong pointed out a sudden slowdown in secondary market transactions at the start of the second half of the year.
One buyer, surnamed Fok, recently set her sights on a 1,431 sq ft unit at Provident Centre in North Point. The owner was keen to sell and had set an asking price of HK$19.5 million. However, Fok took a cautious approach and insisted that she could offer no more than HK$18.5 million.
“The outlook for the property market seems rather uncertain,” said Fok, an aviation industry professional who had been viewing properties for four months but remained cautious.
“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,” she said. “I want to wait and see a bit longer before I consider entering the market. I don’t want to rush into a purchase.”
Market activity began to slow in June and remained relatively quiet at the start of July, with the number of prospective buyers viewing properties in the North Point area dropping by 10 per cent compared with the previous month, said Brian Choy, associate sales director at Century 21 Sunrise Property.
“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,” he said.
An investor, surnamed Ng, said she sold two small units in City One Sha Tin in quick succession, both measuring 284 saleable sq ft, which she bought in November. They changed hands for HK$4.6 million each in April and June, yielding a combined profit of HK$1.22 million. However, the investor did not immediately re-enter the market following their sale.
“I want to adopt a wait-and-see approach,” said Ng. “I’d like to see a profit margin of at least around 10 per cent before getting back in.”

She anticipated that property prices could dip further in the short term, and hoped to find listings in the range of HK$4.2 million to HK$4.3 million.
“However, prices haven’t gone down to that level yet, so I don’t have enough confidence to re-enter the market right now,” she said.
Transaction volume was low in early July, with only two deals recorded at City One Sha Tin, according to Now Wong, district associate director at Midland Realty.
City One Sha Tin is one of the largest private housing estates in Hong Kong, which analysts regard as a proxy for measuring the health of the city’s secondary residential market.
However, the transacted price per saleable square foot at City One Sha Tin was currently hovering around HK$15,000, up from HK$13,000 at the beginning of the year, Wong said.
“Owners are asking for aggressive pricing, but buyers remain largely in a wait-and-see mode,” he noted. “Investors, in particular, need to see a ‘real bargain’ before they feel compelled to enter the market.”
One owner in Tsuen Wan, intending to trade up, initially listed his owner-occupied unit at Tsuen Wan Centre – measuring 380 saleable sq ft – for HK$4 million. After attracting nearly 10 groups of prospective buyers, he promptly raised the asking price to HK$4.15 million, causing buyers to pull back.
Explaining his aggressive pricing strategy, the owner – who wished to remain anonymous – said: “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.”
Given the cumulative rise of nearly 20 per cent from recent lows in March 2025, property prices are currently at a high level and require technical consolidation, said Louis Chan, vice-chairman and CEO (residential) for Asia-Pacific at Centaline Property Agency.
“Buyers are also taking this opportunity to reassess the situation,” he said.
Chan further noted that various talent attraction schemes have generated immense demand for housing in Hong Kong, keeping rental yields for residential properties high.
“Residential rents will rise by another 5 per cent in the second half of the year, which will drive an overall increase of 5 to 8 per cent in property prices for the second half of 2026,” Chan said.


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Secondary residential market faces uncertainty following a strong first half, as Beijing’s capital outflow crackdown cools sentiment


Secondary residential market faces uncertainty following a strong first half, as Beijing’s capital outflow crackdown cools sentiment.


Hong Kong’s secondary property market braces for shift after strong first half

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Secondary residential market faces uncertainty following a strong first half, as Beijing’s capital outflow crackdown cools sentiment

Secondary residential market faces uncertainty following a strong first half, as Beijing’s capital outflow crackdown cools sentiment