First-Home Buyer Activity Levels and Entry Points

First-home buyer activity in Wan Chai rose sharply in the second quarter of 2026, with 187 transactions recorded for units under 450 square feet, according to Centaline Property data released this week.

The increase comes as mortgage rates for first-time applicants stabilised at 3.25 percent for loans under HK$10 million, allowing more young buyers to qualify after months of hesitation tied to global uncertainty.

Many of these buyers focused on streets such as Johnston Road and Tai Yuen Street, where older walk-up blocks near the Wan Chai Market offered smaller flats within reach of the government’s Starter Homes scheme administered through the Housing Authority.

Entry points and neighbourhood patterns

Properties along Johnston Road averaged HK$21,800 per square foot for 350-square-foot units in June, down HK$400 from March levels, while blocks near the Blue House heritage cluster on Stone Nullah Lane saw slightly firmer pricing at HK$22,600 per square foot. Local agents at Midland Realty noted that 28 of the 187 deals closed below HK$8.5 million, a threshold that opened doors for applicants under the 2025 First-Time Buyer Mortgage Insurance Programme.

Transaction volumes at these price points remain modest compared with the 312 deals logged in the same quarter of 2024, yet the share of first-home purchases has climbed from 31 percent to 41 percent of total Wan Chai sales.

Outlook for the coming months

Prospective buyers should review their eligibility under the Housing Authority’s Starter Homes scheme before the next application round closes on 15 August and should contact banks directly for pre-approval letters valid through September. Those watching Tai Yuen Street listings are advised to monitor new listings in the first week of each month, when owners typically release units ahead of quarterly rates adjustments.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.