Development of new private residential units was at a stable level in the first half amid better market sentiment.
Latest figures from the Hong Kong Monthly Digest of Statistics show the Government issued consents to start work on 18,481 private flats in the first half - up 7 per cent from the 17,267 units approved a year earlier.
Private housing starts for last year were 33,843 units, close to the Government's housing target of 35,000 units a year.
There were 40,962 private housing starts in 1997 and 22,113 in 1996.
Knight Frank director of valuation Anthony Lau Chun-kuen said market sentiment in the first half had improved and developers appeared keen to start projects.
But he said sentiment had since weakened and he doubted whether developers would continue to push ahead with projects.
'Developers will have to continue building properties for sale in future. But they may choose to start works on projects one by one,' he said.