According to data from Midland Realty's research division, which consolidates information from the Primary Residential Property Sales Network and market intelligence, Hong Kong's primary residential market saw a notable resurgence in August, with both transaction volume and value climbing. The number of primary deals rebounded to approximately 1,090, marking a 34% month-on-month increase and hitting a three-month high, while the total transaction value reached about HK$15.82 billion, surging roughly 40% from the previous month, signaling a clear improvement in market sentiment for new developments.
The recovery in August primary home sales was particularly pronounced in the ultra-luxury segment, which became a key factor driving the percentage growth in transaction value to outpace that of volume. As an international financial hub, Hong Kong's dynamic capital markets have contributed to this trend, with IPO fundraising reaching US$41 billion by early August, already surpassing the full-year figure for 2023. The expansion of high-value-added financial institutions, such as asset management firms and hedge funds, has fueled a wealth effect and boosted housing demand from high-income professionals, providing solid support for the luxury property market. Additionally, amid ongoing geopolitical uncertainties, Hong Kong's mature financial infrastructure, free capital flow, and international business environment continue to attract both domestic and foreign capital, as well as high-net-worth individuals seeking asset allocation. Super-luxury homes, characterized by scarce supply and strong value preservation, are expected to remain a favored investment choice.
In August, primary residential transactions exceeding HK$100 million totaled 15, a sharp 87.5% increase from the 8 deals recorded in July, reaching the third-highest monthly level this year. This momentum has pushed the cumulative tally for the first eight months of the year to 107 such transactions, more than doubling the 47 deals recorded in the same period last year and already exceeding the full-year total of 101 in 2023. Industry observers believe this figure could soon break the post-2018 record of 109 deals under the Primary Sales Ordinance.
Looking ahead to September and October, market expectations are optimistic as the traditional "golden September and silver October" peak season approaches. Several new large-scale projects are slated for launch, offering buyers a wider array of choices. Should developers adopt a sales-first pricing strategy, industry forecasts suggest that combined primary transaction volumes for the two months could exceed 3,000 deals.