Hong Kong’s April Property Deals Surge to 5-Month High as Stamp Duty Cuts Ignite Buying Frenzy
By: Velorine
Hong Kong’s housing market roared back to life in April, with homebuyers rushing in after a long slump, fueled by a government stamp duty cut that reignited demand especially for budget-friendly flats.
Property sales soared to 5,694 units last month, the highest since November’s tally of 6,298, as deep discounts and tax relief helped unleash pent-up demand. The buying frenzy was set off by a February policy change that slashed the stamp duty to just HK$100 for homes priced up to HK$4 million, up from a previous HK$3 million threshold.
“This spike reflects real market enthusiasm from late March to early April,” said Derek Chan, head of research at Ricacorp Properties. “The stamp duty cut gave a real jolt to the secondary market.”
Buyers Swarm to Bargain Deals
One headline-making project was SHKP’s Sierra Sea in the New Territories. On April 26, the developer sold all 318 units and launched part of what will eventually be Hong Kong’s largest residential development in three decades, with 9,700 flats in total.
The hook? A price tag that undercut the neighborhood by 20%. The first batch of units went for an average of HK$10,877 per square foot, an irresistible deal compared to nearby lived-in homes.
Still Below Last Year, But Momentum Builds
Despite the April rally, the market hasn’t fully rebounded from its pandemic-era slump. Year-on-year, home sales are still down 27%, while transaction values have dropped by a steep 40.3%.
But the tide could be turning. Budget homes under HK$4 million already make up 25% of total transactions. That number could climb to 30% in the coming months, according to CBRE, as more buyers pounce on stamp duty savings.
Clouds on the Horizon?
However, not everything is rosy. Trade tensions flared in April after U.S. President Donald Trump hiked tariffs, casting a shadow over buyer sentiment. Ricacorp expects May’s sales to dip by nearly 10% due to global uncertainty and the holiday slowdown.
“The stock market’s turbulence isn’t helping either,” said Buggle Lau Ka-fai, chief analyst at Midland Realty. “Volatility always makes buyers cautious.”
Still, industry insiders remain cautiously optimistic. Eddie Kwok, executive director at CBRE, sees a possible double-digit jump in transaction volumes for the second quarter as developers aggressively move inventory.
With over 28,000 unsold new flats an all-time high developers are pushing ahead with discounts and relaunches to grab buyer attention.
Caution Ahead
The April buzz may be short-lived. Centaline Property Agency is forecasting a pullback in May, with sales possibly dropping to around 5,000 units. “The excitement has cooled,” said Yeung Ming-yee, senior associate director at Centaline. “We’re looking at a potential 30% drop in registered transactions.”
The Bottom Line
April’s surge shows what’s possible when policy, pricing, and pent-up demand align but sustaining that momentum will take more than just a tax break. Global market jitters, economic headwinds, and wary buyers still pose major hurdles for Hong Kong’s path to a full property market recovery.
