March Private Home Sales Surge 1.5x, Transactions Hit 4-Month High Despite 20% Quarterly Drop

In March 2025, the total number of property transactions (including residential, parking spaces, and commercial units) recorded 6,661 registrations, with a total value of HK$45.647 billion. This represents a sharp month-on-month increase of 54.7% in volume and 61.4% in value compared to February's 4,307 registrations and HK$28.287 billion. These figures mark the highest levels seen in four months, following November 2024's 7,689 registrations and HK$64.125 billion.

According to Centaline, the market became more active after the Lunar New Year, with developers aggressively launching projects, reversing three consecutive months of declining transaction volumes. Contributing factors included relaxed stamp duty measures announced in late February’s budget, a rebound in the Hong Kong stock market, and economic stimulus policies from mainland China, all of which improved market sentiment. This trend is expected to continue into April, further boosting registrations.

Despite the rebound in March, the first quarter of 2025 saw a 16.5% drop in transaction volume (15,906 registrations) and a 25.5% decline in value (HK$110.668 billion) compared to the previous quarter. The slowdown was largely due to the traditional market lull during the Lunar New Year and a wait-and-see attitude from buyers, influenced by the upcoming inauguration of the US president.

March saw a sharp recovery in residential property transactions, recording 5,367 deals worth HK$38.814 billion. This marked a significant increase of 67.7% in volume and 68.7% in value compared to February's 3,200 deals and HK$23.014 billion. These figures reached a 4-month high since November 2024. However, quarterly numbers reveal a 19.2% drop in volume (12,193 deals) and a 30.3% decline in value (HK$88.571 billion) compared to the previous quarter.

In the primary market, new private home transactions surged by 1.48 times month-on-month in March, with 2,221 deals worth HK$16.29 billion, compared to February's 895 deals and HK$8.44 billion. This marked a 4-month high since November 2024, which saw 2,489 deals worth HK$31.92 billion. However, on a quarterly basis, the first quarter recorded 3,874 deals worth HK$32.47 billion, reflecting a 21.8% decrease in volume and a 46.2% drop in value compared to the previous quarter.

The secondary market also saw a recovery, with 2,950 transactions worth HK$21.79 billion in March, up 36.9% in volume and 52.5% in value compared to February's 2,155 transactions and HK$14.29 billion. This marked a 3-month high in volume and a 4-month high in value. However, quarterly data showed an 18.4% drop in volume (7,773 deals) and a 17.2% decline in value (HK$54.74 billion) compared to the previous quarter.

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