93,000 new flats in next 3-4 years, highest level since 2004
With such an abundant supply, developers likely to speed up project launches with prices remaining competitive
Hong Kong developers will continue to adopt their low-price strategy, after government estimates revealed the potential supply of new flats is expected to hit 93,000 over the next three to four years, the highest level since September 2004.
The latest supply estimate from the Transport and Housing Bureau is the equivalent of an average 23,000 new flats per year.
With such an abundant supply of new properties, developers are likely to speed up project launches and prices will remain competitive, said agents.
On Friday, Nan Fung Development released its price list for the first batch of 138 units at its joint venture residential development, Ori, in Tuen Mun.
One of the 138 flats is being offered at below HK$2 million, while 54 per cent are priced at below HK$3 million. The 253 square foot units are being offered for HK$2.48 million, and price will be reduced to HK$1.97 million after factoring in a maximum 20 per cent discount, the company said.
“It is the first project launched for sale at below HK$2 million since 2014,” said Sammy Po, chief executive at Midland Realty’s residential department.
Two years ago, Cheung Kong put a HK$1.55 million price tag on its 177 square foot studio flats at Mont Vert in Tai Po.