However, it is unlikely to cool down the heated housing market.
Private residential completions are projected to rise to an average of 22,000 units per year between 2018 and 2021, according to a residential sales market monitor from JLL.
However, the growing supply of housing units is unlikely to introduce a housing correction in Hong Kong’s heated property market as the market easily absorbs the launch of new units by developers.
JLL adds that this has to do with the fact that new launches have been riding on the success of previous property projects such as Cullinan West which has raised prices by 10% for their second round of flat sales, just six months after the first phase.
Moreover, buying sentiment and hiring intentions remain positive, indicating a strong consumer base with disposable income to spare.
JLL expects mass residential capital values to grow 15% YoY and stabilise by 2018.
Photo from Exploringlife - Own work, CC BY-SA 4.0
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