Secondary HOS Transactions Plunge 36% in July Excluding Hung Fuk Estate Anomalies
AM730 · 1 SOURCESabout 1 hour ago2 MIN
Summary
Hong Kong's secondary Home Ownership Scheme (HOS) housing market experienced a significant downturn in July 2024, with actual transactions plummeting 36% month-over-month after accounting for unusual registrations at Hung Fuk Estate in Tin Shui Wai. The Land Registry reported 1,183 HOS transactions valued at HK$4.71 billion for the month, but these figures were heavily distorted by 788 special registrations at Hung Fuk Estate where owners began transferring property rights back to the government. Excluding these anomalous cases, the market recorded only 395 genuine transactions, down from 619 in June, representing the sharpest monthly decline in recent months. Average transaction prices also softened, reaching HK$3.98 million per deal—the lowest level in seven months—though the median price excluding Hung Fuk Estate remained relatively stable at HK$4.26 million, just 1.1% lower than the previous month.
Key Points
- Excluding Hung Fuk Estate's 788 special registrations, genuine HOS transactions totaled only 395 cases in July, a 36% decline from June's 619 cases
- The highest-priced July transaction was a mid-low floor unit at Block 4 of Yu Chui Court in Sha Tin, spanning 650 sq ft of saleable area, sold for HK$8.148 million or HK$12,535 per sq ft
- Properties priced at HK$6 million or above suffered the steepest drop, with only 29 transactions recorded in July—a 44% monthly decline
- Kowloon recorded 81 transactions, down roughly 50% month-over-month, while Hong Kong Island saw 51 deals, a 23% decrease from June
- Tin Shui Wai's Tin Chung Court topped the sales chart with 11 transactions in July, up approximately 10% from the previous month
Why It Matters
The sharp contraction in secondary HOS transactions reflects broader weakness in Hong Kong's property market amid economic uncertainty, with the summer holiday period amplifying the seasonal slowdown. The upcoming Green Form Subsidised Home Ownership Scheme 2025, scheduled to begin unit selection in late August, is expected to absorb additional purchasing power and further dampen secondary market activity in the coming months .
The sharp contraction in secondary HOS transactions reflects broader weakness in Hong Kong's property market amid economic uncertainty, with the summer holiday period amplifying the seasonal slowdown. The upcoming Green Form Subsidised Home Ownership Scheme 2025, scheduled to begin unit selection in late August, is expected to absorb additional purchasing power and further dampen secondary market activity in the coming months .