Hong Kong Homes on the Rise: 18,000 New Flats Amid Rate Cuts and Improved Market Sentiment

Hong Kong Developers Respond to Improved Market Conditions

Hong Kong developers are gearing up to launch nearly 18,000 new flats as sentiment in the housing market improves ahead of interest rate cuts. According to the Lands Department, presale consent was approved for three projects in Tai Po, Sai Kung, and Ap Lei Chau, totaling 213 units. Developers like Manhattan Realty, Chinachem Group, and Tai Cheung Properties are at the forefront.

Overview of Presale Projects

• Manhattan Realty: 135 units in Tai Po, completed last month.
• Chinachem Group: 40 units in Sai Kung, expected completion on November 30.
• Tai Cheung Properties: 38 units in Ap Lei Chau, due for completion in December 2025.

The city is witnessing a significant increase in the processing of presale consents, with 31 applications for a total of 17,642 units currently in the pipeline. Factors such as high inventory levels and rising interest rates are balancing home prices, although improvements in market sentiment indicate a potential turnaround.

Market Dynamics and Sales Trends

Developers, including Wharf Holdings, Sun Hung Kai Properties, and CK Asset Holdings, are aggressively selling new residential units at discounts to address the accumulation of unsold inventory. Recently, major sales events saw developers selling significant portions of their offerings, suggesting a recovery in market demand.

In a pivotal move, the Hong Kong Monetary Authority (HKMA) reduced its benchmark rate by half a point for the first time in four years, aligning with the US Federal Reserve's easing measures. This could catalyze further transactions in the property sector.