Payment system for property transactions expanded to secondary market
The Hong Kong Monetary Authority and partner organizations have expanded the Payment Arrangements for Property Transactions (PAPT) to cover residential property sales in the secondary market. This new arrangement, effective from February 28, 2026, offers a faster and safer electronic payment option for buyers and sellers.
Faster, safer property payments
The Payment Arrangements for Property Transactions (PAPT) now facilitate the direct transfer of a buyer's mortgage loan proceeds to the seller's bank account via the interbank electronic payment system.
This enables sellers to receive funds on the completion day, offering a significantly faster and safer alternative to the conventional method of settling through solicitors' accounts using physical cheques.
HKMA Chief Executive Eddie Yue emphasized the central bank's commitment to promoting electronic payments for property transactions, aiming to enhance efficiency and security.
He encouraged the public to utilize this expanded arrangement for residential property sales in the secondary market, building on PAPT's successful adoption in refinancing.
The initiative is a joint effort with The Hong Kong Association of Banks, The Law Society of Hong Kong, and the Estate Agents Authority, providing a robust framework for property transactions.
Industry-wide digital push
The expansion of PAPT follows extensive research by The Hong Kong Association of Banks (HKAB) since 2023 and broad industry consultations.
HKAB Chairman Sun Yu confirmed the banking industry's full preparedness, with updated systems and ongoing training for frontline staff.
The Law Society of Hong Kong (LSHK) President Roden Tong supported the initiative, noting PAPT's smooth operation in refinancing and its alignment with digital payment trends.
The Estate Agents Authority (EAA) also strongly backed the move, encouraging agents to introduce PAPT to clients.
PAPT, first introduced in November 2022 for residential mortgage refinancing, has already facilitated over 15,000 transactions, with over 75 percent of eligible refinancing transactions opting for it in the past six months.
A necessary digital leap
This expansion of PAPT represents a crucial modernization of Hong Kong's property transaction landscape, addressing long-standing inefficiencies and risks associated with physical cheques.
While not a revolutionary change, it significantly enhances the security and speed of a major financial process for everyday citizens.
Its successful adoption in refinancing suggests a strong potential for widespread use, marking a positive step towards a more robust digital financial infrastructure.