Ballooning Hong Kong supply of new homes in 2023 will have developers slashing prices, buyers saving 10 per cent or more
- The potential supply of new homes in 2023 will be as high as 28,000 units, equivalent to twice that of Taikoo Shing, Centaline Property Agency says
- In areas with serious backlogs, buyers will see developers slash prices by 10 per cent or more amid historically high interest rates, agents say
The supply of new homes on the market in Hong Kong next year could more than double compared with this year, driving developers to slash prices by 10 per cent or more in hopes of attracting buyers amid historically high interest rates, according to property agents.
The potential supply of new homes in 2023, according to Centaline Property Agency, will be as high as 28,000 units – equivalent to at least twice that of Taikoo Shing, a sprawling Hong Kong Island development that has 61 residential buildings.
The swollen 2023 inventory will include 11,000 incomplete units already approved for sale but not yet launched, plus 17,000 units already on sale. For comparison, new launches totalled 12,030 in 2022 and 17,000 in 2021, according to Centaline.
“Rising inventory weighs on primary-home prices,” said Joseph Tsang, chairman of JLL in Hong Kong. “There is more and more leftover stock on the market. As a result, I foresee developers will have to do something very soon. They cannot hang on in a situation like this forever, as financial costs keep on rising.”
Some areas are particularly flooded with inventory. For example, in Kai Tak, at least four developments with a total supply of 5,687 homes were approved for sale in 2022 but have not launched yet, according to data from Centaline.