Hong Kong’s nano flats take biggest hit in housing slump as sales sink 48 per cent in first 11 months
- More buyers are opting for one-bedroom or two-bedroom units as a result of relaxed mortgage rules and lower prices, says Midland Realty’s Sammy Po
- Hong Kong home values have dropped by more than 14 per cent this year, with full-year sales volume expected to plummet to the lowest since 2013
Hong Kong’s notorious tiny flats, sometimes no bigger than a parking space, have emerged as the biggest losers in the city’s property downturn.
Buyers are snubbing so-called nano-flats as they opt for bigger options following mortgage policy changes and price drops.
Developers were only able to sell 48 per cent of the studio flats available in the first 11 months this year, while the rate for one-bedroom and two-bedroom flats stood at 53 per cent and 67 per cent respectively, according to Midland Realty.
“More buyers can buy one-bedroom or two-bedroom units now” as a result of relaxed mortgage rules and lower prices, said Sammy Po, chief executive officer of Midland’s home division. “So there are few people who would want to buy nano-flats.”
Strained by interest rate hikes and a population exodus, Hong Kong home values have dropped by more than 14 per cent this year, with full-year sales volume expected to plummet to the lowest since 2013.