Business Insights | New Normal in the Home Ownership Scheme Secondary Market

For many Hong Kong households, the Home Ownership Scheme (HOS) provides an important pathway to home ownership through subsidised housing priced below the open market. After paying the land premium, owners may freely sell their flats on the open market. Flats with unpaid land premium can be sold through the HOS Secondary Market to eligible Green Form and White Form buyers.

The HOS Secondary Market underwent a notable shift in the first half of 2026. Total secondary HOS transactions increased from 1,707 in the first half of 2025 to 2,068 in the first half of 2026, representing a year-on-year increase of 21.1%. More significantly, transactions achieving prices above HK$10,000 per sq ft surged from 132 to 338 cases, a substantial increase of 156.1%. As a result, the proportion of these higher-priced transactions rose from 7.7% to 16.3% of total market activity.

Importantly, this does not indicate a market-wide price surge. During the same period, the average sale price of transactions above HK$10,000 per sq ft increased only modestly from HK$10,918 per sq ft to HK$11,115 per sq ft, while the median price rose from HK$10,661 per sq ft to HK$10,907 per sq ft. In other words, more transactions successfully crossed the HK$10,000-per-sq-ft threshold instead of prices rising sharply across the board. This reflects a broader level of market acceptance, transforming HK$10,000 per sq ft from what was once considered a premium benchmark into a common transaction level for selected HOS estates.

Expansion of Higher-Priced Transactions Reflects Stronger Market Liquidity

Of the additional 361 HOS secondary transactions recorded in the first half of 2026, 206 were transactions above HK$10,000 per sq ft, indicating that market growth was largely driven by the higher-priced segment. The total transaction value of this segment also increased significantly from approximately HK$638 million to HK$1.68 billion, further highlighting the improvement in market liquidity.

From a geographical perspective, Kowloon remained the core market for higher-priced HOS transactions, accounting for more than half of all transactions above HK$10,000 per sq ft. However, the most significant growth was recorded in the New Territories, where such transactions increased by 236% year-on-year. The region's share rose from less than 30% to nearly 40% of the premium segment. This suggests that HK$10,000-per-sq-ft pricing is no longer confined to urban estates but is gradually extending to a broader range of New Territories locations.

At the estate level, Hoi Lok Court, Choi Hing Court, Lai Tsui Court and Bauhinia Garden all recorded active transaction volumes. Meanwhile, the newer Kai Long Court achieved transactions exceeding HK$14,000 per sq ft, demonstrating that newer estates with convenient transport links and stronger resale prospects continue to command notable premiums.

Changing Buyer Profile Supports Acceptance of Higher Unit Prices

Demand is no longer concentrated solely on smaller units. In the first half of 2026, flats sized between 401 and 500 sq ft of saleable area remained the largest transaction category. However, units above 500 sq ft accounted for 26.6% of all transactions above HK$10,000 per sq ft, representing a further increase from the previous year.
In terms of pricing, transactions between HK$4 million and HK$5 million remained the dominant market segment. Nevertheless, units priced between HK$5 million and HK$7 million accounted for more than 40% of higher-priced transactions, indicating that some households are willing to pay a higher overall purchase price in exchange for better locations, larger living space or newer properties.

Building age is another noteworthy factor. Estates aged between six and ten years continued to form the core of the market, recording 189 transactions above HK$10,000 per sq ft with an average price of HK$11,370 per sq ft. However, estates aged between 21 and 30 years also generated 117 transactions above the HK$10,000-per-sq-ft level, with an average price close to HK$10,700 per sq ft. This suggests that buyers are not simply pursuing newer properties but are placing greater emphasis on factors such as location, transport connectivity, layout and future resale potential.

Several demand drivers are supporting this trend. First, even when unit prices exceed HK$10,000 per sq ft, HOS flats generally remain more affordable than comparable private residential properties in the same district, making them attractive to first-time homebuyers.

Second, the expansion of the White Form Secondary Market Scheme continues to broaden the buyer pool, while Green Form buyers increasingly view HOS flats as an upgrade path from public rental housing to home ownership. In addition, higher loan-to-value mortgage arrangements help reduce down-payment requirements and enhance purchasing power.

Transaction data also indicates that demand has expanded beyond smaller flats to include mid-sized and larger family-oriented units. Numerous mature estates with over 20 years of history have also recorded significant numbers of transactions above HK$10,000 per sq ft, demonstrating that buyers are placing greater value on practicality, location and long-term resale prospects rather than simply focusing on newer developments.

HK$10,000 per sq ft Is Shifting from a Benchmark to a Market Norm

Overall, the most significant change in the HOS Secondary Market during the first half of 2026 was not rapid price appreciation, but rather a clear increase in buyer acceptance of higher unit-price transactions. The HK$10,000-per-sq-ft level is gradually evolving from a psychological threshold into a market benchmark for selected HOS estates.