Hong Kong's second-hand real estate market is experiencing a surge in short-term speculation! 59 quick profits recorded this month

According to data from the Meilian Property Comprehensive Land Registry, a total of 492 second-hand residential transactions with resale profits within one year were recorded in Hong Kong in 2025, with an average of about 41 transactions per month, at a relatively moderate level. In January 2026, the pace of market transactions significantly accelerated, breaking through 59 cases in just over half a month. The remaining days are expected to continue to refresh data, and the surge in short-term speculation activity has become a clear footnote to the recovery of the real estate market.

The performance of regional markets is more representative, and the recent short-term trading in Sha Tin Garden City is a typical example. According to Zhongyuan Real Estate, a two bedroom unit with a practical area of 286 square feet in the Yafangyuan community was sold for 3.8 million yuan at zero negotiation, with a practical price of 13287 yuan per square foot. The original owner was a new speculator born in the 1990s. He purchased the unit for 3.06 million yuan in October last year and earned a book profit of 740000 yuan in just three months, with a high return rate of 24.2%. The unit was taken over by young couples from the same district who, due to the unsuccessful draw for the new property, switched to buying second-hand units for their own use, reflecting the diversified support of market demand.

The SIERRA SEA project in Sai Kung's Fourteen Villages, which has recently been completed, has become another core area with a high concentration of short-term speculative funds. This project has recorded 36 cases of resale profit within one year of holding goods this month, with the number of cases skyrocketing 11 times compared to last month, becoming one of the most active new short term traders. As a newly joined project, such intensive short-term resale behavior not only reflects investors' rapid recognition of regional value, but also highlights the speculative mentality of fast in and fast out in the current market.

Behind the rampant short-term speculation is the resonance of multiple favorable factors in the Hong Kong property market. Since the complete cancellation of the "spicy tactics" for residential properties in February 2024, the removal of restrictions such as additional stamp duty and buyer stamp duty has completely released market liquidity and cleared policy barriers for short-term transactions. At the same time, the Federal Reserve's interest rate cuts have led to a decline in HIBOR (Hong Kong Interbank Offered Rate), with current residential mortgage rates generally falling below 3%. Coupled with the boost in rental demand brought about by talent policies, the rental return rate has rebounded to over 4%, allowing properties to enter a positive cycle of "renting to support loans" and significantly restoring asset allocation value.

According to data, as of the end of 2025, nearly 400000 talent entry programs in Hong Kong have been approved, and about 260000 approved applicants with their families have arrived in Hong Kong. The continuous influx of high-quality population not only supports the rental market, but also brings incremental demand to the real estate market, further strengthening the market recovery forecast. In this context, funds are rapidly pouring into the real estate market in search of short-term gains, driving a surge in short-term speculation cases.