Hong Kong property: home supply projected to drop amid market revival

The supply of new private homes in Hong Kong is projected to fall over the next four years as property developers booked more sales in recent months amid a revival in market sentiment.

The number of homes was projected to drop to about 101,000 units through 2029, according to a quarterly projection published by the Housing Bureau on Friday. The estimated stock fell by 4,000 from March and by 8,000 from a year earlier, it said. The inventory has declined in the five past projections, the report showed.

Unsold units in completed projects in the city fell by 1,000 to 27,000 units from the March quarter, the bureau added. A year ago, they amounted to 19,000 units.

The city’s residential property market has shown signs of confidence among homebuyers, with transactions hitting a seven-month high in June, official data showed. It was also the first time the city witnessed four consecutive months of 5,000-odd deals since the market slumped starting in late 2021, according to CBRE.

Developers including New World Development (NWD) and Sino Land are putting 288 flats on sale this week, as more buyers returned to the primary market to take advantage of a four-year slide in the housing market.