How long will it take for the primary market to digest piled-up new housing supply?
There are 79,000 new homes available in the city.
It will take about 5.4 years before developers in the primary market can sell newly available housing units given the current sales velocity in Hong Kong, according to JLL.
Based on its Residential Market Monitor, there are 79,000 new homes available in Hong Kong.
Over the past three years, JLL said the market’s average annual primary sales volume was 14,568 units.
By the end of September, the number of unsold units of completed projects hit 14,700, which is 36% higher than the three-year average of 10,800.
“This figure is expected to surpass 16,000 in December 2022 due to the absence of market activity towards year-end,” JLL said.
Meanwhile, the number of units pending presale consent approval reached 20,579 by the end of November, representing a 29% YoY increase.
“Amongst the 20,554 units with presale consent approved in 2022, around 10,000 units remained unsold,” JLL said.
“As such, it may take 5.4 years for the market to digest the unsold units of completed projects and projects under construction,” the expert added.