New flat sales in Hong Kong at 15-year high as developers offer deep discounts amid protests, impending vacancy tax
- Homebuyers splashed out HK$214 billion on 20,042 new flats in the first 11 months of the year
- Average home price fell 26.8 per cent to HK$10.67 million from record HK$14.69 million in 2018
Homebuyers spent HK$214 billion (US$27.3 billion) on more than 20,000 new flats in the first 11 months of the year, the most since 2004, as developers rushed to offload stock because of the impending vacancy tax and uncertain market outlook, according to Ricacorp Properties.
“The average price has fallen this year as developers launched new projects with smaller units at deeper discounts, particularly in second half when market sentiment turned sour,” said Derek Chan, head of research at Ricacorp.
CK Asset Holdings, Hong Kong’s second-largest developer, launched its first new property project of the year in October at discounts of as much as 10 per cent, bowing to a stalling market that had been rattled by four months of unprecedented street protests.
Developers have also sped up flat sales because of the soon-to-be introduced vacancy tax. The government proposes to impose a tax of 5 per cent of a flat’s value if a unit is left empty for six months after receiving an occupation permit, to stop developers from hoarding completed but unsold property, and to ease the city’s housing shortage.