Hong Kong property market rebounds: Sha Tin's first city recorded 6 transactions in 3 days!

Chen Dihao, Senior District Business Manager of Zhongyuan Real Estate Shatin Zhifu First City Branch, revealed that as of this month, Shatin First City has temporarily recorded 10 second-hand transactions, and in just three days, 6 transactions have been concentrated, with a significant increase in transaction density and market activity. This performance is highly consistent with the overall recovery trend of the Hong Kong real estate market. According to the "Top Ten Housing Estates" monitored by Zhongyuan Real Estate, the number of weekend appointments for viewing properties has continued to rise recently, and buyers' confidence in entering the market has significantly increased. The industry generally expects the prosperous market atmosphere to continue until the Lunar New Year.

In the specific transaction case, the middle level D room in Building 8 of Sha Tin First City, which was just facilitated by the branch, is quite representative. The unit has a practical area of approximately 327 square feet, making it a popular two bedroom unit for families in need. The spatial layout is compact and practical, meeting the core needs of passengers boarding the train. The original opening price of the unit was about 4.65 million yuan. After negotiation between the buyer and seller, it was successfully sold for 4.498 million yuan, with a discount of about 3.3%, equivalent to a price of about 13755 yuan per square foot. From the perspective of price, this transaction price per square foot is consistent with the recent two bedroom transaction range of HKD 3.9-4.5 million in Sha Tin First City, reflecting that the current second-hand market prices in the region are relatively stable and the bargaining space remains within a reasonable range.

The buyer involved in this transaction is a typical first-time homebuyer with a clear purpose of self occupation. According to Chen Dihao, new buyers have higher requirements for the convenience of their living location as they need to work in hospitals within Sha Tin district. The first city of Sha Tin is adjacent to medical facilities within the district, with a well-developed transportation network and unit spacing that meets their own living needs. Therefore, they quickly made a decision to take on the property after viewing it. In fact, this type of "choosing residence based on business" is the main support for the current second-hand property market transactions in Hong Kong, especially against the backdrop of declining interest rates and lower property costs, which is accelerating the release of suppressed demand for self occupation.

It is worth noting that the original owner of this transaction also received a stable long-term investment return. According to the data, the original owner purchased the unit for 2.3 million yuan as early as 1997 and held it for about 29 years. The resale made a profit of 2.198 million yuan, and the property appreciated by about 95.6% during the period. The substantial profits from long-term holding not only reflect the asset preservation and appreciation ability of Sha Tin First City as a blue chip housing estate, but also reflect the long-term investment value of high-quality residential properties in Hong Kong. Against the backdrop of achieving a "simultaneous increase in price and quantity" in the Hong Kong real estate market by 2025 and institutions generally optimistic about a new round of upward trend in 2026, high-quality units in these mature housing estates are more favored by the market.

The active transactions in the first city of Sha Tin are not isolated phenomena, but a microcosm of the overall recovery of the Hong Kong property market. In 2025, the overall number of registered building purchase and sale contracts in Hong Kong reached 80702, a four-year high. The total value of building purchase and sale contracts increased by 15% year-on-year, achieving a "simultaneous increase in price and quantity". Entering 2026, this trend will continue, with not only a booming scene of over 197 times overbought in the new market, but also a concentrated release of demand in the second-hand market.

The current recovery of the real estate market is due to the multiple resonances of policy dividends, interest rate trends, and demand release. Since the comprehensive "withdrawal of spicy food" in Hong Kong in 2024, the cost of home ownership has significantly decreased, activating the accumulated purchasing power; Subsequently, several major banks in Hong Kong followed suit with interest rate cuts, lowering the prime rate to between 5% and 5.25%, further lowering the entry threshold for mortgage costs. At the same time, various talent programs in Hong Kong continue to make efforts to attract a large number of professionals to Hong Kong, giving rise to rigid housing demand. The emergence of the phenomenon of "rent to pay" has also prompted many tenants to turn to "rent to buy", providing sustained momentum for transactions.