Flat sales under HK$10,000 per sq ft soar 90% with 534 deals

According to a report by Midland Realty’s Research Centre, the number of transactions for private residential properties priced under HK$10,000 per square foot has surged this year, driven by the launch of several low-price new developments, particularly in the northwestern New Territories.

As of June 24, 2025, 534 such transactions have been recorded, already exceeding last year’s total of 282 by 89.4%.

Tuen Mun accounted for the majority of these deals, with 426 transactions (79.8%). This was followed by Hung Shui Kiu and Ha Tsuen, which recorded 38 transactions (7.1%).

Despite the increase, transactions under HK$10,000 per square foot accounted for less than 6% of the 9,006 total primary market deals recorded during the same period. In contrast, the majority of transactions (about 46%) fell within the HK$10,000–15,000 per square foot range, with over 4,150 deals logged.

The first half of 2025 saw a sharp increase in the number of primary market transactions, reaching 9,006 deals as of June 24—surpassing the 8,632 deals in the same period last year and setting a six-year high since the second half of 2019. However, the total transaction value dropped by 23%, from HK$105.2 billion last year to approximately HK$81 billion this year, reflecting a "higher volume, lower value" trend due to the dominance of lower-priced units.

The vacancy rate in core areas hit 12.1%, a four-and-a-half-year high. This shift has led to the rise of "livelihood districts" (popular local areas trending on social media), boosted by Xiaohongshu.

Midland Realty predicts that residential rents will reach new highs in the third quarter, with some estates seeing rent per square foot increase by 37% over six years.

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