New | Hong Kong developers keen to launch projects as government targets 83,000 new homes over next 3 years
Looming supply of a record 83,000 new flats in HK over the next few years is expected to spur sales rush ahead of slowing price growth
Hong Kong developers are gearing up to launch new developments for sale as the government's projections for a record supply of private homes over the next three to four years are likely to cap price growth, say industry experts.
In August alone, a potential total of 2,000 new flats are queuing up for pre-sale.
"Home price growth will slow from next year as an increased supply will hit the market then," said Sammy Po Siu-ming, the chief executive of Midland Realty's residential department.
On Friday, the Transport and Housing Bureau announced in its latest report that about 83,000 new private homes were projected to hit the market over the next three to four years, the highest level in almost 11 years.
"It is the first time the supply of private homes will have surpassed the 80,000 level since the government started releasing the data in the third quarter of 2004," said Buggle Lau Ka-fai, the chief economist at Midland.
He said the government's determination to increase land sales had started to take effect.
