Expansion of PAPT to cover sale and purchase of residential properties in secondary market

The Hong Kong Monetary Authority ("HKMA"), The Hong Kong Association of Banks ("HKAB"), The Law Society of Hong Kong ("LSHK"), and the Estate Agents Authority ("EAA") jointly announced on 5 February 2026 that the Payment Arrangements for Property Transactions ("PAPT") are being expanded to cover the sale and purchase ("S&P") of residential properties in the secondary market of Hong Kong, effective from 28 February 2026. This initiative is backed by the Consumer Council ("CC"), aiming to enhance transaction efficiency and security.

Under the PAPT, the buyer’s mortgage loan proceeds will be transferred electronically to the seller’s bank on the completion day, providing a faster and safer payment option compared to traditional methods involving physical cheques. Both buyers and sellers may request their estate agents to incorporate relevant clauses into the provisional S&P agreement for this arrangement.

The expansion of PAPT is driven by the HKMA’s commitment to promoting electronic payments for property transactions, as stated by Mr Eddie Yue, Chief Executive of the HKMA. This initiative builds upon the successful implementation of PAPT for refinancing transactions and aims to create a safer and more efficient payment option for both buyers and sellers.

The banking industry, led by HKAB and Bank of China (Hong Kong) Limited, has conducted extensive research and consultations since 2023 to prepare for this expansion. Training programs are underway for frontline units to ensure proper implementation, creating a reliable electronic payment solution for property transactions.

The Law Society of Hong Kong supports this initiative, recognizing the increasing commonality of electronic payments in Hong Kong. Mr Roden Tong, President of LSHK, emphasizes that different transaction scenarios may require different payment arrangements, and solicitors will provide legal advice throughout the process to protect clients' interests and manage risks.

The Estate Agents Authority ("EAA") strongly supports the expansion of PAPT and expects estate agents to actively introduce this arrangement to their clients in secondary market residential property transactions. Mr Gordon Leung, CEO of the EAA, highlights the importance of clients understanding the benefits and making appropriate choices regarding their payment methods.

HKAB has published a leaflet introducing PAPT for S&P of residential properties in the secondary market. The public may also contact mortgage service providers, estate agents, and solicitors for further information. Since its introduction in November 2022, PAPT has facilitated over 15,000 transactions, with over 75% of eligible refinancing transactions opting for this arrangement in the past six months. Mortgage banks will provide PAPT for S&P transactions of residential properties in the secondary market in Hong Kong, with provisional S&P agreements signed on or after 28 February 2026.