Hong Kong’s inventory of unsold residential property rises to a decade-high of 10,000 homes as trade war, protests deterred buyers
- The figure stood at 10,000 unsold homes at the end of the second quarter, 1,000 units more than the end of March
- The expanding stock underscores the proposal by Chief Executive Carrie Lam to tax developers to bring housing supply in line with demand and help rein in prices
Hong Kong’s inventory of unsold residential property rose to the highest in more than a decade, as uncertainties brought by the US-China trade war and the city’s ongoing political unrest deterred buyers from big-ticket purchases.
The figure stood at 10,000 unsold homes at the end of the second quarter, 1,000 units more than the end of March, according to data by the Transport and Housing Bureau.
“Developers still need to proactively sell completed new projects to avoid special rates,” said Centaline Property Agency’s senior associate research director Wong Leung-sing, referring to the vacancy tax. “The 10,000 completed unsold homes has just reached the warning level. Do not let the number rise.”
The proposed duty, if and when it is passed by the city’s legislature, will slap a retroactive duty of about 5 per cent of a property’s value on the developer if the property remains unsold a year after its completion.