Posted on 25 February, 2021 | By Property852
In the next two to three quarters about 13,700 Hong Kong apartments are expected to be put up for presale regardless of the global Covid-19 pandemic.
According to the Lands Department at the end of last year 11,446 new Hong Kong apartments were awaiting approval for pre-sale consent. This includes the 2,286 apartments that have already met with approval but have not yet been launched.
Amongst this total the Kai Tak area boasts the largest supply of new Hong Kong apartments with around 2,589 units or 20% of the overall amount. These forthcoming development projects include Monaco Phase 2 and 10 Muk Tai Street Project Phase 1 developed by Wheelock Properties; One Victoria developed by China Overseas Land and Investment; and the first and second phases of 7 Muk Tai Street developed by Henderson Land.
There are also large-scale projects in Yuen Long and Tin Shui Wai awaiting pre-sale consent, including the No. 1 Wetland Park Road Project and the Yuen Long Station project, which provide a total of 1,224 units. Most of these units will be small to medium sized apartments.
It usually takes just three to six months for incomplete development projects to be approved after application. With 11,000 units awaiting approval they should all be approved and launched within this year.
The sale price of these apartments should be in line with market rates seeing as they will most likely be targeting the mass-market.
However the managing director of Savills Valuation and Professional Services, Charles Chan Chiu-kwok, believes that given that around 14,000 incompleted units are available for sale this year then the number is quite high considering the Covid-19 pandemic and economic issues. Mr Chan therefore believes that with these factors couples with a 16 year high in the unemployment rate, that developers would be offering lower pricing so that they can keep a high inventory turnover. Buyers may even be sought after with the use of highloan to value ratio mortgages and other such promotions.
Vincent Cheung Kiu-cho, Vincorn Consulting and Appraisal’s managing director believes that the figure of 14,000 Hong Kong apartments is close to that of this time last year although he feels that the supply has already peaked and will ease off. His assertion is that Kai Tak will be the main supply base for the next five years and that property developers will offer discounted process on their new projects. Considering the plus points bought by the Sha Tin-Central Link he feels that property demand in that area will continue to be strong. In addition to this due to the relaxed mortgage insurance policy, small to medium sized Hong Kong apartments continue to be desirable and properties priced between HKD 6m and HKD 10m will do very well in the market.