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Hong Kong developers likely to offer incentives to lure buyers as they brace for glut of new units in 2023, says CBRE
- About 45,000 new flats are likely to become available this year, says CBRE, roughly four times the number that sold in 2022
- In an effort to offload them, developers may offer incentives such as attractive mortgage plans, says the property consultant
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Hong Kong developers are likely to roll out incentives to lure buyers after a dismal year that saw home sales – both new and second-hand – plunge to a record low, according to CBRE.
With unsold stock of between 16,000 and 18,000 units currently, and new supply in the pipeline, about 45,000 new flats are likely to become available this year, the property consultancy said in its latest report.
That is about four times more flats than were sold in the whole of last year.
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“After record-low primary residential transactions of 10,315 units in 2022, we believe developers will be under pressure to push their units for sale this year,” CBRE said. “To attract property buyers, we anticipate developers will adopt a more aggressive approach by rolling out various incentives strategically, including progressive payment mortgages and attractive mortgage plans.”
One approach developers may use is keeping prices the same but offering sweeteners such as agency fee rebates, CBRE said.
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The first weekend property sale of the year saw Henderson Land offering 108 units in the third phase of its One Innovale development in Fanling, New Territories. Units were priced at an average of about HK$14,560 (US$1,861) per square foot, “after discounts”, slightly lower than the HK$14,618 average price when the project launched in August.
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