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Hong Kong property
Business

As Hong Kong property launches hit 7-year high, analysts say pent-up demand may moderate

  • ‘The inventory of developers should drop steadily towards the end of the year,’ Midland’s Buggle Lau says
  • Properties that have been priced at a bargain have already been absorbed by the market: JLL’s Cathie Chung

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Residential buildings in Hong Kong. In the next 12 months, 31,000 new residential units are expected to be launched by developers, property consultancy JLL says. Photo: Bloomberg
Cheryl Arcibal
Buoyed by the brisk sales of flats following the removal of Hong Kong’s property cooling measures, the city’s developers have this year launched 4,800 new units as of last week, a seven-year high and more than half of what they made available to the market in the same period last year, Midland Realty said.
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In the next 12 months, 31,000 new residential units are expected to be launched by the developers, property consultancy JLL said. That would be three times as much as the 10,650 new units sold during the whole of last year, according to official data.

Starting this weekend and continuing in the coming months, more than 1,900 new units could be made available to potential buyers, including 939 units at Yoho Hub II in Yuen Long by Sun Hung Kai Properties, 259 units in Topside Residences in Yau Ma Tei by CSI Properties and 114 units at Jardini in Jardine’s Lookout and Wong Nai by Citic Pacific.

CK Asset Holdings will also launch 15 of the 70 remaining units in its El Futuro project in Sha Tin. The first batch of the project was launched in 2020. The latest units to be put on offer on May 1 have the “best views of the horse racing course at night and special features such as U-shaped bedroom windows”, a spokeswoman said.

Including uncleared inventory at projects launched in previous years, 6,060 units have been sold between January and April, according to data tracked by Midland.

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“The inventory of developers should drop steadily towards the end of the year,” said Buggle Lau Ka Fai, Midland’s chief analyst. “A 10 to 20 per cent drop is reasonable.”

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