Posted on 29 January, 2018 | By Property852
According to 2017 research and statistics, there was more than a thirty three percent drop in new Hong Kong apartment development projects last year. However, analysts say that the properties that were built in the last few years and the current inventory that is associated with housing development will be able to fill any existing gaps. They go on to state that there was no decline in property supply in Hong Kong.
There has not been a shortage of Hong Kong apartment for rent construction projects but unfortunately, these projects are known to fall through the rails over time. For instance, there is strong evidence supporting the fact that the number of rentals whereby construction began in 2017 steadily fell in 2016.
Housing construction experienced a steady decline of 800 in comparison to 6,000 that was previously experienced.
However, the figures rose to 7,700 units in the last quarter of the year 2017. Ingrid Cheh, the associate director of the JLL Research Department said that despite this drop in Hong Kong apartments that were constructed in 2017, the annual total supply for 2013 to 2017 is 51 percent higher in comparison to the years 2007 to 2012. This especially goes for rentals in comparison to other forms of personal housing.
As the market focus is on primary sales, any developer inventory is looking to be absorbed. Figures show that 9,000 Hong Kong apartments were part of private housing units that were not sold last year.
The senior director at Knight Frank, Mr. Thomas Lam said that developers would be taking advantage of rising home prices and aggressively launching Hong Kong apartments for rent onto the market. He also added that the government housing policy will determine the market outlook in the next six months.
With the gradual roll-out of Hong Kong apartments in the pipeline supply is expected to be much higher, resulting in an average of 20,000 units annually for five years to come. This only means that homeowners will be able to enjoy bigger earnings.
It is estimated that there would be an addition of 97,000 new private flats over the next three to four years.
A study by Demographia Consultancy named Hong Kong as one of the few cities with the least affordable market. The report suggested that the average buying price of a home is 19.4 times higher than the number of annual pre-taxes that every household pays.