New housing starts in Q2 were at 4,300 units

Bringing 1H 2014 housing starts to 12,300.

The Hong Kong Government has just released the Q2 2014 Statistics on Private Housing

Supply in Primary Market, and from there, it was stated that new housing starts in Q2 were at 4,300 units.

According to a research report from Barclays, together with the 8,000 units started in

Q1 2014, this brings 1H 2014 housing starts to 12,300 units.

The report noted that this indicates a 54% increase y/y and representing 88% of 2013’s full-year housing starts of 14,000.

The 1H 2014 12,300 new housing starts point to more supply to come.

Here's more from Barclays:

On 25 April 2014, when the government released the Q1 2014 Primary Housing Supply data, we had cautioned investors not to annualise the 8,000 new housing starts in Q1 as construction starts could be lumpy (see Q1 2014 Private Housing Supply – New Housing Starts in Focus).

While Q2 2014’s 4,300 construction starts are lower than in Q1, the total is still above 2013’s average quarterly housing starts of 3,500 units and broadly in line with 2012’s quarterly average starts of 4,650 units.

On 25 April 2014, when the government released the Q1 2014 Primary Housing Supply data, we had cautioned investors not to annualise the 8,000 new housing starts in Q1 as construction starts could be lumpy (see Q1 2014 Private Housing Supply – New Housing Starts in Focus).

While Q2 2014’s 4,300 construction starts are lower than in Q1, the total is still above 2013’s average quarterly housing starts of 3,500 units and broadly in line with 2012’s quarterly average starts of 4,650 units.