Most of the new housing supply will be built on New Territories.
Total residential sales are expected to reach 60,000-63,000 units next year averaging 20,000 units per year from 2018 to 2022, according to Knight Frank’s Hong Kong residential market outlook.
6 in 10 (60%) of the new houses will be built in New Territories whilst only less than 10% will be housed in Hong Kong Island.
Knight Frank also forecasts that residential home prices will rise 5% next year, with an expectation of strong growth from the luxury homes market.
Moreover, Mainland developers will continue to snap up new residential land sites for development but is expected to do so at a more strategic and selective pace.
Primary market transactions is set to continue its domination of the market as Knight Frank expects 30% or more of its transactions from that segment.
Additionally, the adverse impact of interest rates on the market remains limited and geopolitical and economic factors from the Mainland will continue to have the greatest effects on Hong Kong’s property market.
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