Henderson Land takes the lead as Hong Kong’s biggest builder of micro flats, beating other developers by wide margin

Henderson Land Development has emerged as Hong Kong’s largest developer of “micro flats” in the first half, underscoring the popularity of cheaper housing among investors and those seeking to get a start on the housing ladder.

Henderson, owned by Hong Kong billionaire Lee Shau-kee, sold 351 micro flats, typically defined as units with floor area less than 200 square feet, in the six months ended in June, generating revenue of HK$1.67 billion (US$213 million), according to data provider Dataelements.

Property development company Billion ranked as the No 2 builder, selling 229 micro flats, which generated revenue of HK$959 million, according to Dataelements.

“Micro flats are very popular in Hong Kong since they are more affordable for first time buyers, as well as investors,” said Sammy Po Siu-ming, chief executive at Midland Realty’s residential division. “Obviously, the market sentiment is very good for small units.”

During the first half, property developers launched marketing activities at 20 residential buildings across the city, offering about 3,000 flats in single-room or studio layouts. About 2,400 of these units, which are classed as small by the Rating and Valuation Department, were snapped up by buyers, according to data from Midland Realty.

“Potential buyers are still looking for small units which are more affordable in terms of the lump sum down payment. If there is demand in the market, developers will provide this kind of unit,” Po said.