Ricard Court: Second-hand private homes in Hong Kong were consolidated at a high profit ratio of 69.4% in August

The Zhitong Finance App learned that Chen Haichao, head of the research department of Lijiagge Real Estate, said that since the return profit ratio for second-hand private homes fell to the 60% edge in August last year, it immediately rose repeatedly to 70% level in June of this year, and then consolidated at a high level. According to the Comprehensive Land Registry, out of 1,916 second-hand private property sales registrations in Hong Kong in August 2026, there were 1,329 book profit cases, accounting for 69.4%, down 0.2 percentage points from month to month, falling for 2 consecutive months, but it is still the 3rd highest since the past 31, reflecting a slight cooling in the popularity of the second-hand property market in recent months, and the profit ratio has weakened relatively.

By property area, Hong Kong Island had the best performance in August, with a profit success rate of 71.8%, but fell 1.6 percentage points from month to month; followed by Kowloon, which reported 71.5%, up 2.6 percentage points from month to month; as for the performance of the New Territories, which underperformed the market, recorded only 67.0%, and a month-on-month decline of 1.3 percentage points. According to the property resale price analysis, the profit ratio of the property price group of 8.01 million yuan to 10 million yuan was the highest, with a monthly increase of 3.1 percentage points, involving 176 cases; in addition, the monthly profit ratio for the 11 million to 12 million yuan group also reached 76.7%, up 4.8 percentage points from month to month, and the performance was also superior to that of the market.

Furthermore, the data shows that the average profit margin for each private home transfer case in August of this year showed a decline of 25.4%, down 1.7 percentage points in a single month, while in recent months it has remained in a narrow range of more than 25%, which is the fourth highest level in the year. The share of second-hand private property transactions with book profits of 1 times or more was 25.7%, up 1.8 percentage points from month to month, and 493 cases were recorded; as for those with book losses, the proportion fell 0.1 percentage points month-on-month to 29.7%, the second lowest in the past 31 months; there were 17 cases that were tied last month, accounting for an increase of 0.3 percentage points to 0.9%.

Furthermore, looking at the 10 most profitable housing estates last month, 4 housing estates recorded 100% profits, including Taikoo Shing (11), Tianjin (10), Harbour View Garden (9), and Metropolis Station (9). Other high profit success rates include 85% of Huixi and 83% of Huangpu Garden. Among these 10 housing estates, the average profit margin for each case ranged from 0.02% of the worst loss to 1.05 times the best profit. Among them, Taikoo Shing recorded an average profit of 105.3% per transfer, making it the best performing housing estate; as for Harbour Plaza and Metropolis Station, they also earned an average of 101.1% and 61.1% respectively. However, Huixi and Sunrise Kangcheng performed relatively poorly, averaging a slight loss of 0.02% and a slight profit of 1.3% for each change of hands, respectively.

Looking ahead to the future market, Chen Haichao pointed out that the second-hand property market's performance in recent months was strained. Affected by traditional summer vacation market sales, second-hand landlords are more passive in asking prices, and their advantages are not as obvious as in the middle of the year; in addition, the overall market is also hampered by rising interest rates, so it is expected that the profit ratio and average profit margin of second-hand private homes in September will continue to fluctuate narrowly. Among them, the former is expected to run rampant between 69.2% and 69.6%, while the latter is expected to return slightly to the level of 25% It is expected that after a round of consolidation, market performance will remain optimistic and stable in the future.