Hong Kong developers to flood market with more than 9,000 homes in second quarter amid improving sentiment
- Analysts say that although developers have waited patiently for sentiment to improve, competition will be fierce as they will offer discounts to lure buyers
Hong Kong developers are likely to flood the market with more than 9,000 homes – nearly half the government’s annual target – as they look to cash in on the rising prices. But analysts say increases could be dampened as builders woo buyers with hefty discounts.
Derek Chan, head of research at Ricacorp Properties, said that he expects developers to speed up their sales plans to take advantage of the recovering appetite. “However, to win over buyers amid the likely fierce competition, developers will not tag their homes at a much higher price.”
Chan predicted that after a rapid pick up of home prices in the first quarter of about 4 per cent, the pace would slow to 3 per cent in the second quarter as supplies increased.
Hong Kong’s home prices rose 1.6 per cent in the first two months of the year after having dropped by 9.2 per cent from August to December, according to data from the city’s Rating and Valuation Department.
Buyers have been emboldened by the recent stock market rally in Hong Kong and mainland China, the US Federal Reserve’s dovish stance on interest rate rises for the rest of the year, and confidence that the trade dispute between the US and China would be resolved soon.