Numbers of new private homes on Hong Kong market hit a 14-year high, as property prices continue to drop
- Quarter-on-quarter figures are highest since January 2005
- Government says figures are a result of its market-cooling measures but analysts say there are several factors at play
The number of new private homes approved for sale in Hong Kong in the last quarter hit a 14-year record high after a market-cooling measure took effect in June, according to the government.
The news came as prices in the world’s most expensive property market continued to drop, with those of properties on the pricier Hong Kong Island suffering a bigger dip.
According to a paper provided to the Legislative Council’s housing panel on Friday, the Lands Department issued consent to developers to sell 12 uncompleted residential projects, comprising 6,979 flats, from July to end of September.
The quarter-on-quarter number was the highest since January 2005. Four of those projects have already been launched for sale.
The authorities will continue to monitor pre-sale activities “to ensure orderly implementation” and will “remain vigilant in the property market and the evolving external environment”, the paper reads.
The department’s tightening of the so-called consent scheme, intended to ensure the timely release of first-hand flats, was among six housing initiatives announced by Chief Executive Carrie Lam Cheng Yuet-ngor in June.
Since June 29, developers have been required to sell at least 20 per cent of the total number of units at each turn of sale, including those sold through tender.