New homes that Hong Kong developers will launch in the coming days and weeks will serve as a crucial test of the impact of Beijing’s latest capital-control measures, amid signs of recovery in the city’s residential property market.
“Seemingly, a number of developers have turned more cautious in launching primary projects of late,” said Jack Tong, director of research and consultancy at Savills Hong Kong.
Mainland Chinese buyers have accounted for about a third of all home purchases in Hong Kong since the removal of stamp duties in 2024. In the first four months of 2026, they bought 5,777 homes, equivalent to more than 41 per cent of last year's total transactions, according to data compiled from official records.
The pace picked up sharply in April, when mainland Chinese registrations rose nearly 48 per cent month on month to 1,892 deals – the highest level in two years. Transaction value climbed nearly 31 per cent to HK$18.9 billion (US$2.4 billion), a 17‑month high. The value of purchases in the first four months reached HK$61.6 billion, equal to 45 per cent of last year's HK$137.9 billion total.
Mainland Chinese buyers accounted for a third of all home purchases in Hong Kong since the removal of stamp duties in 2024, according to Savills. Photo: Eugene Lee
The figures were based on the use of Putonghua pinyin names in official records, though some buyers may hold Hong Kong permanent residency.
The city’s residential property market has been rebounding, with the official index of lived-in home prices steadying or rising since April last year. Developers have gradually raised prices of new projects, moving away from steep discounts to sell units.
In May, 7,138 homes changed hands – the second‑highest monthly total so far in 2026. In the first five months, new home sales hit 10,232, about 50 per cent more than in the same period in 2025, heading towards the strongest first half since 2020.
Beijing’s latest initiatives, however, “warrant close attention” as they target illegitimate outflow channels and signal heightened bank-level scrutiny, bearing most directly on investment-oriented mainland buyers funding multi-unit bulk acquisitions, including through offshore investment and trading accounts now facing tighter oversight, Tong said earlier.
The view comes as developers begin a new round of launches.
On Thursday, 75 units of Phase 4B of La Montagne in Wong Chuk Hang will go on sale. The project, jointly developed by Kerry Properties, Sino Land, Swire Properties and MTR Corporation, and the new launch consists of two-bedroom flats, ranging from 484 sq ft to 546 sq ft.
With maximum discounts of 18 per cent, prices range from HK$13.4 million to HK$17.3 million, or HK$27,545 to HK$31,747 per square foot.
On Thursday, 75 units of Phase 4B of a project in Wong Chuk Hang will go on sale. The new launch consists of two‑bedroom flats, ranging from 484 sq ft to 546 sq ft. With maximum discounts of 18 per cent, prices range from HK$13.4 million to HK$17.3 million, or HK$27,545 to HK$31,747 per square foot.
Another developer is planning to launch a residential project in the northern New Territories in July. The development, to be built in two phases with about 780 units, is touted as the first private residential development close to the Kwu Tung MTR station on the East Rail Line, part of the Northern Link that will anchor the Northern Metropolis mega‑project near the mainland border.
For now, Tong said the impact of Beijing's measures was difficult to gauge. "But I think they may be a smaller proportion of Chinese investors buying multiple units," he said. "We need to see if end‑user demand can take up the slack."
Source: SCMP
