In May 2025, Hong Kong's property market experienced a notable decline in building unit transactions and values, according to the latest figures released by the Land Registry. The total number of sale and purchase agreements fell to 6,442, representing an 11% drop from April and a 12.5% decrease compared to the same period last year. Additionally, the overall transaction value stood at $49.8 billion, marking a slight decrease from the previous month and a significant 20% reduction year-on-year. Residential sales also saw a downturn, with both quantity and value reflecting downward trends.

Residential property transactions numbered 5,105 in May, showing a 10.3% decline from April and an 8% decrease compared to May 2024. The total value of these residential sales amounted to $38.2 billion, reflecting a 9.4% monthly drop and a substantial 28.3% decline over the past year. These figures exclude government-subsidized housing schemes unless specific conditions were met post-restriction periods. Despite this decline, land search activity saw a modest increase of 9.6% from April, although it was marginally lower than the previous year's figure for May.

The data provided by the Land Registry highlights the ongoing dynamics within Hong Kong’s real estate sector. Notably, the 12-month moving average for transactions settled at 5,643, indicating a slight 1.3% decrease from April but remaining 17.1% higher than the prior year. This suggests that while there is a short-term dip, long-term trends may still point toward resilience in the market.

Market analysts attribute the recent fluctuations partly to timing differences in deed registrations, which can lag up to 30 days. This delay affects the immediate reflection of actual market activities, adding complexity to interpreting current trends. Furthermore, broader economic factors and policy adjustments could be influencing buyer sentiment and transaction volumes.

Despite the observed declines, the continued interest in land searches hints at underlying confidence among potential investors and buyers. As the market navigates through these changes, stakeholders remain vigilant about emerging signals that might shape future expectations. The interplay between transactional patterns and external influences will likely continue to define the trajectory of Hong Kong's property landscape.