Prices of small flats, which have recorded the steepest fall from September’s peak, could come under more pressure as three out of every 10 flats completed this year will be small-sized. Centaline Property Agency said apartments smaller than 430 square feet, classified as category A under Rating and Valuation Department survey, could account for 30 per cent of this year’s new flat supply – the highest since 1999 The estimated 30 per cent will translate into 5,400 units, surpassing the previous peak of 4,738 flats in 2003, says Centaline. In 1999, the number of completed small flats reached 7,271, or 21 per cent of the total. More developers expect to build small flats in Hong Kong In March, the Rating and Valuation Department estimated about 18,000 private-sector housing units would be completed this year – up 61 per cent from last year and reaching a 12-year high. The figure for next year will be about 18,000 as well. From 2010, the government released some sites with size restrictions in order to increase the supply of small flats and rein in an overheated property market. “[Flats at] many such sites will be ready this year,” said Wong Leung-sing, an associate director of research at Centaline Property Agency. The projects to be completed are Century Link in Tung Chung, La Lumiere in Hung Hom, Skypark in Mong Kok, Yuccie Square in Yuen Long, Heya Crystal and Heya Aqua in Cheung Sha Wan. Small flats in Hong Kong see drop in prices and rents in August Nearly 70 per cent of the 1,400-unit Century Link phase one, built by Sun Hung Kai Properties, are one- to two-bedroom flats. The project is slated for completion in the last quarter of this year. The 1,129-unit Yuccie Square, developed by Cheung Kong Properties, will have flats as small as 425 sq ft, also expected to be completed in the fourth quarter. CK Property’s 216-unit La Lumiere, largely comprises 400 sq ft flats, is likely to be completed around the same time. Rating and Valuation said the home price index shows prices of small flats fell for five consecutive months to 300.2 in February. They have now lost 11.2 per cent from September’s peak, it said. Wong said the number of ready small flats fell to as low as 373 units in 2009, before rebounding to 2,000-plus in 2014.