Mainland buyers have become the core pillar of Hong Kong's property market, with transaction volume in the first quarter hitting a record high for the same period

1. Both volume and price increase, with mainland buyers achieving a record-high transaction volume

In the first quarter of this year, mainland buyers' enthusiasm for entering the market continued to soar, with transaction volumes experiencing leapfrog growth. Compared to the same period last year, the number of transactions increased by 52.5%, and the transaction amount rose by 92.8%, showing a fiery trend of "both volume and price rising". In terms of transaction preferences, mainland buyers' funds are clearly tilted towards first-hand properties. The transaction amount of first-hand residential properties reached HK$24.66 billion, which is 36.7% higher than that of the second-hand market, reflecting the high recognition of mainland customers for the quality, supporting facilities, and appreciation potential of new homes.

This purchasing power has remained high for several consecutive months. The number of residential registrations by mainland buyers has exceeded 1,000 for 13 consecutive months, and the transaction amount has exceeded HKD 10 billion for 10 consecutive months, marking the longest sustained active period since records began in 2010. Both in terms of transaction size and continuity, mainland buyers have become the most stable source of demand in the Hong Kong property market, completely reversing the previous market pattern dominated by local buyers.

II. The luxury housing market dominates, with transactions exceeding HKD 50 million accounting for nearly 70%

In the realm of high-end real estate, the dominance of mainland buyers is even more pronounced. Data indicates that among first-hand luxury home transactions exceeding HK$50 million, mainland buyers constitute nearly 70%, exhibiting a trend where the higher the price, the greater their proportion. From mid-to-high-end properties ranging from HK$20 million to HK$50 million, to upgraded properties in the tens of millions range, the proportion of mainland buyers reaches 64.3% and 57.3% respectively, comprehensively covering the mid-to-high-end market.

Traditional luxury residential areas such as Peak, Deep Water Bay, and Kowloon Station, as well as emerging high-end districts, have become the primary targets for high-net-worth individuals from the mainland. These buyers not only appreciate the scarcity and value retention of Hong Kong properties, but also regard them as an important part of their global asset allocation. In some top-tier luxury property transactions, it is not uncommon for mainland buyers to purchase multiple properties at once, further driving up the transaction heat in the luxury housing market.

III. Talent policy + demand-driven: four groups become the main force of home buyers

The strong entry of mainland buyers is primarily attributed to the synergistic effect of Hong Kong's talent policies and multiple demands. Currently, among mainland buyers, individuals approved under the Quality Migrant Admission Scheme, the Quality Migrant Admission Scheme for Mainland Talents and Professionals, parents accompanying their children to study, and high-net-worth individuals constitute the four core groups. Over the past three years, Hong Kong has approved more than 410,000 applications under various talent schemes, of which approximately 300,000 were from the mainland. These highly educated and high-income talents have gradually shifted from renting to home ownership after coming to Hong Kong, creating a stable and rigid demand.

The group of parents who accompany their children to school focuses on educational resources and purchase school district housing for their children to attend prestigious schools in Hong Kong. High-net-worth individuals value Hong Kong's status as an international financial center and regard property as a hedge asset and a carrier for wealth inheritance. Coupled with the full "de-escalation" of Hong Kong in 2024, the cancellation of additional stamp duty for non-local buyers, and the equal tax rate for mainland buyers and local residents, the cost of purchasing property has been significantly reduced, further stimulating the willingness to enter the market.