HKMA Expands Electronic Payment System for Secondary Market Property Transactions Starting February 2026

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

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB), together with the Law Society of Hong Kong (LSHK) and the Estate Agents Authority (EAA), jointly announced today (February 5) the expansion of the Payment Arrangements for Property Transactions (PAPT) (Note 1)to cover the sale and purchase (S&P) of residential properties in the secondary market of Hong Kong, effective from February 28, 2026 (Note 2). This initiative is also supported by the Consumer Council (CC).

Under PAPT, the buyer's mortgage loan proceeds will be transferred to the seller's bank through the interbank electronic payment system, enabling the seller to receive the sale proceeds on the completion day at the earliest. Compared to the conventional payment method, in which mortgage loan proceeds need to be settled via the solicitors' accounts (Note 3)using physical cheques, PAPT is a faster and safer option. Buyers and sellers who wish to use PAPT may request their estate agents to incorporate relevant clauses into the provisional S&P agreement.

The Chief Executive of the HKMA, Mr Eddie Yue,said, "The HKMA is committed to promoting electronic payment for property transactions to improve efficiency and security. With the widespread adoption of PAPT in refinancing, it will now be expanded to cover S&P of residential properties in the secondary market. We encourage the public to make good use of this new arrangement. We would also like to extend our sincere gratitude to the LSHK, the EAA, the CC, and other stakeholders for their valuable advice and support in refining the PAPT arrangement, thereby providing buyers and sellers with a safer and more efficient payment option."

The Chairman of HKAB, and Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited, Mr Sun Yu,said, "The Hong Kong Association of Banks has conducted research since 2023 to expand the scope of PAPT to cover sale and purchase of residential properties in the secondary market. The feedback gathered from this in-depth study and extensive consultations with the industry and relevant stakeholders helped shape the proposal announced today. The banking industry is now fully prepared across its operating systems, processes, and internal guidelines pertaining to PAPT while training programmes are underway for frontline units to ensure proper implementation. PAPT will provide a reliable electronic payment solution for both buyers and sellers in property transactions, advancing the digital transformation of mortgage lending processes."

The President of the LSHK, Mr Roden Tong,said, "Additional Payment Arrangements for Property Transactionsis not a new concept. PAPT has been available for refinancing transactions, and operating smoothly. As electronic payment becomes increasingly common in Hong Kong, the Law Society of Hong Kong considers that the extension of PAPT to sale and purchase of residential properties in the secondary market aligns with times and technological development. The Law Society supports this initiative. Different transaction scenarios may suit different payment arrangements. Solicitors will provide legal advice to clients throughout the process of property transactions to ensure that their interests are protected and the risks are properly managed."

The Chief Executive Officer of the EAA, Mr Gordon Leung,said, "The EAA strongly supports the banking industry's expansion of the PAPT to the sale and purchase of residential properties in Hong Kong's secondary market. Over the past year, we have actively communicated with the HKMA and HKAB regarding the details of PAPT, acting as a bridge between them and the estate agency industry. The EAA expects estate agents to actively introduce PAPT to their clients when handling residential property transactions in the secondary market, so that their clients understand the benefits PAPT can bring and make appropriate choices in payment method."

HKAB has published a leaflet to introduce PAPT for S&P of residential properties in the secondary market. The public may also contact banks offering mortgage service, estate agents, and their solicitors for further details.

Note 1: PAPT was first introduced for residential mortgage refinancing in November 2022, with more than 15 000 transactions completed using PAPT so far. Over 75 per cent of eligible refinancing transactions opted to use PAPT over the past six months.

Note 2: 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 February 28, 2026.

Note 3: The sale proceeds are generally received two working days after completion of a property transaction, following the settlement of physical cheques.

Source: AI-found images

Expansion of PAPT to cover sale and purchase of residential properties in secondary market Source: HKSAR Government Press Releases

Source: AI-found images

Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $3.4 million

Hong Kong Customs detected two dangerous drugs cases in Hong Kong International Airport and Yau Ma Tei respectively on April 1 and yesterday (April 2), and seized a total of about 3.1 kilograms of suspected ketamine, about 1.7 kilograms of suspected cocaine and about 1.7 kilograms of suspected methamphetamine with a total estimated market value of about $3.4 million. Two persons suspected to be connected with the cases were arrested.

In the first case, a 43-year-old male passenger arrived in Hong Kong from Bangkok, Thailand on April 1. During customs clearance, Customs officers found about 3.1 kilograms of suspected ketamine concealed inside food packaging in his baggage. The man was subsequently arrested.

In the second case, during an anti-narcotics operation conducted in Yau Ma Tei on April 2, Customs officers intercepted a 41-year-old man and later escorted him to a hotel room nearby for a search and seized about 1.7 kilograms of suspected cocaine, about 1.7 kilograms of suspected methamphetamine, a drug inhaling apparatus and a batch of drug packaging paraphernalia. The man was subsequently arrested.

The arrested persons have been charged with one count of trafficking in a dangerous drug respectively and will appear at the Kwun Tong Magistrates' Courts tomorrow (April 4).

Customs will continue to step up enforcement against drug trafficking activities through intelligence analysis. The department also reminds members of the public to stay alert and not to participate in drug trafficking activities for monetary return. They must not accept hiring or delegation from another party to carry controlled items into and out of Hong Kong. They are also reminded not to carry unknown items for other people, nor to release their personal data or home address to others for receiving parcels or goods.

Customs will continue to apply a risk assessment approach and focus on selecting passengers from high-risk regions for clearance to combat transnational drug trafficking activities.

Under the Dangerous Drugs Ordinance, trafficking in a dangerous drug is a serious offence. The maximum penalty upon conviction is a fine of $5 million and life imprisonment.

Members of the public may report any suspected drug trafficking activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $3.4 million Source: HKSAR Government Press Releases

Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $3.4 million Source: HKSAR Government Press Releases

Hong Kong Customs detects two dangerous drugs cases and seizes suspected drugs worth about $3.4 million Source: HKSAR Government Press Releases