Developers battle weak buyer sentiment in Hong Kong with new home sales forecast to fall to levels not seen since 2013
- Midland Realty expects the total number of new homes sold this year to potentially fall below 10,000 units
- Rising interest rates, a slumping stock market and economic headwinds in China have soured homebuyer sentiment in Hong Kong
Developers are continuing to battle a severe downturn in Hong Kong’s housing market, with one real estate firm forecasting that the total number of new homes sold this year may be the lowest since 2013 as rising interest rates, a slumping stock market and economic headwinds in China sour sentiment.
Midland Realty expects the total number of new homes sold this year to potentially fall below 10,000 units, which would be the lowest level since 9,986 in 2013.
“Market sentiment is not good. Launches may have slowed down,” said Buggle Lau, chief analyst at Midland Realty. “It seems the confidence of homebuyers is not high currently, the outlook for interest rate is uncertain, and these factors have contributed to a ‘wait and see’ attitude.”
Unless a particular development can really capture buyer interest, the response will not be good, added Lau.
Meanwhile, Centaline Property Agency has forecast that the total number of new homes sold in November will come in at 400, the lowest level in seven months as sales of new developments slow.
Henderson Land Development said it had sold 10 out of 113 flats for sale at One Innovale-Cabanna in Fanling on Thursday.