Hong Kong developers hasten new home sales to clear inventory, but revival seen as limited amid high rates, supply

The market will see about 600 new homes put on sale in November, and agents expect total primary-market transactions to reach 1,300 to 1,500

Developers will need attractive prices and creativity to draw in buyers, Midland Realty residential CEO says

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An agent opens a real estate office in Kennedy Town, Hong Kong, on November 2, 2023. Photo: Yik Yeung-man

Published: 9:30am, 6 Nov 2023

Hong Kong home builders are hastening sales launches to clear inventory amid an uptick in market sentiment after Chief Executive John Lee Ka-chiu announced the relaxation of some stamp duties in his policy address on October 25, but will need low prices to draw buyers in an overall negative environment, agents say.

Sales of many new property projects had been put on hold since late September as the market speculated that the government would soon ease the long-standing cooling measures, which add to the cost of buying a home, consultants said.

In the seven days following Lee’s announcement, the market saw 182 new home sales, according to property agents. The primary market recorded a total of 362 transactions in October, a 32 per cent increase from the 274 cases in September, which was this year’s lowest total, but still far below March, when there were 2,100 transactions, according to Midland Realty.

With developers moving to sell leftover units at already launched projects, the market will see about 600 new home units put on sale in November. And property agents expect total primary-market transactions to reach 1,300 to 1,500 in November.

“Developers will be actively selling their projects as the uncertainties on whether the government will cut the cooling measures has reduced,” said Chau Kwong-wing, chair professor and director of the Ronald Coase Centre for Property Rights Research.