Glut of new units may put pressure on residential market

A new wave of homes is weighing on the residential market, with Sino Land, Kerry Properties, Cheung Kong (Holdings), Hongkong Land and Kowloon Development set to launch their projects for official sale.

Analysts said the 2,130-unit Residence Oasis, a joint venture project between Sino Land and Kerry Properties in Tseung Kwan O, could serve as a barometer for measuring sentiment in the housing market.

Other upcoming residential projects include Hongkong Land's 140-unit Ivy on Belcher's in Western, Cheung Kong's 156-unit Princeton Tower in Sheung Wan, and Kowloon Development's 75-unit La Maison Du Nord in Kennedy Town.

Lehman Brothers property analyst Anthony Wu believed prices in Tseung Kwan O, a typically oversupplied market, would fall under pressure. 'It is difficult to see a big jump in prices there,' he said.

Mr Wu expects the amount of new supply plus the remaining number of units in Tseung Kwan O could reach the 10,000 level in coming years.

His projection of new supply includes Cheung Kong and Nan Fung Development's 2.6 million square foot residential development at Tiu Keng Leng MTR Station, and a consortium formed by New World Development, Chow Tai Fook Enterprises and Singapore businessman Wee Cho Yaw to build a one million sq ft development at Tseung Kwan O MTR Station.

But the other three projects on Hong Kong island should have no trouble enticing buyers as they comprise a total of 371 units.