Developers speed up flat launches as mainlanders return to Hong Kong's housing market

Developers are speeding up new launches in Hong Kong, with more than 3,000 flats to hit the market over the coming months. The new releases will intensify a battle to lure home-seekers who have lost patience waiting for a market correction.

The expedited launch schedules also coincide with the gradual return of mainland buyers to the city's housing market after a sharp decline in their ranks in the wake of the heavy stamp duties imposed over the past two years.

However, some analysts warn that while developers continue to enjoy strong primary sales, transactions in the secondary market remain slow. Moreover, the luxury market is still weak, indicating that the broader market is yet to fully recover.

In the primary market, developers managed to sell about 170 units on Saturday. Sales were again led by Sun Hung Kai Properties' Wings IIIA in Tseung Kwan O, with a further 116 units sold.

Agents said the number of sales was fewer than the 200-plus units achieved the previous weekend as fewer projects were offered. But more units are coming into the pipeline.

Major launches to watch include Cheung Kong's 291-unit Mont Vert Phase II in Tai Po and its 1,648-unit Hemera in Tseung Kwan O. The first batch of 220 units at the 1,092-unit Double Cove III in Ma On Shan, owned by Henderson Land Development and New World Development, will be offered for sale shortly. Also on the way is China Overseas Land and Investment's 255-unit The Nova in Western district.