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 (5 February) the expansion of the Payment Arrangements for Property Transactions (PAPT)1 to cover the sale and purchase (S&P) of residential properties in the secondary market of Hong Kong, effective from 28 February 20262. 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’ accounts3 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.
Mr Eddie Yue, Chief Executive of the HKMA, 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 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.”
Mr Sun Yu, Chairman of HKAB, and Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited, 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.”
Mr Roden Tong, President of LSHK, said, “Additional Payment Arrangement for Property Transactions is 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.”
Mr Gordon Leung, Chief Executive Officer of the EAA, 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.
Hong Kong Monetary Authority
The Hong Kong Association of Banks
5 February 2026
Mr Arthur Yuen (centre, front row), Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA); Mr Sun Yu (fifth from left, front row), Chairman of The Hong Kong Association of Banks, and Vice Chairman and Chief Executive of Bank of China (Hong Kong) Limited; Mr Roden Tong (fourth from right, front row), President of The Law Society of Hong Kong; Ms Juliet Leung (third from left, front row), Director of Regulatory Affairs and General Counsel of the Estate Agents Authority; Ms Maggie Ng (fourth from left, front row), Chief Executive Officer of The Hongkong and Shanghai Banking Corporation Limited; Ms Mary Huen (fifth from right, front row), CEO, Hong Kong and Greater China & North Asia of Standard Chartered; Mr Francis Ho (second from left, front row), Deputy Chief Executive of the Consumer Council; Mr Alan Au (third from right, front row), Executive Director (Banking Conduct) of the HKMA; Ms Haster Tang (first from left, front row), Chief Executive Officer of the Hong Kong Interbank Clearing Limited; and the bank representatives who joined the pilot run, attend the announcement of PAPT’s expansion.
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% of eligible refinancing transactions opted to use PAPT over the past six months.
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 28 February 2026.
3 The sale proceeds are generally received two working days after completion of a property transaction, following the settlement of physical cheques.
