Residential supply to rise 94% in the next three years

21,000 units will be released annually.

JLL predicted that residential supply in Hong Kong will see a 94% expansion in 2017 to 2020, rising to 21,000 units from the annual average of 10,800 units recorded between 2007 and 2016.

Comparing to the annual average of 25,100 units recorded between 1992 and 2006, the projected supply is substantially lower.

JLL noted that developers are building a greater number of smaller units to cater for the mismatch between what households can afford and the availability of small-sized units in the market.

The average size of new flats currently under construction stands at about 600 sq ft, 25% smaller than that of 800 sq ft in 2015, and is the smallest since 2001.