Supply of new flats in Hong Kong to more than meet demand this year, but concerns remain on the horizon
Most of the new supply to come up in Tseung Kwan O, Tai Po and Tuen Mun
Property buyers in Hong Kong will have plenty of choices this year as total supply of new flats will touch 35,000, with small units widely tipped to do well, despite rising prices and an anticipated increase in mortgage rates, according to market watchers.
“Flats costing less than HK$6 million (US$768,000) will be popular among first-time buyers,” said Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International.
Most of the new supply will be available in Lohas Park in Tseung Kwan O, Tai Po and Tuen Mun.
With plenty of supply, flats close to MTR stations are expected to be more resilient should there be any abrupt changes in market conditions if historical trends are taken into account.
Sammy Po Siu-ming, chief executive of Midland Realty’s residential division, noted that new projects such as Lohas Park development close to Lohas Park MTR station, could enjoy high growth in the long term compared to housing estates in other locations. This year more than 6,500 new flats will be available for pre-sale in Lohas Park.
Can you find a Hong Kong flat for under HK$10,000 a month that’s not in the middle of nowhere?
According to JLL, after the opening of the Whampoa and South Horizons MTR stations at the end of 2016, property prices in Kowloon’s Hung Hom, including Whampoa Garden and Laguna Verde, increased by as much as 20 per cent last year, while on Hong Kong Island, housing prices at South Horizons in Ap Lei Chau jumped by as much as 15 per cent.