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Explosion of new residential units to hit Hong Kong market soon

According to JLL's latest Residential Sales Market Monitor, Hong Kong's private residential completed units are forecasted to climb 52% from an average of 14,500 flats per year over the last four years to an average of 22,000 flats per year between 2018 and 2021.

However, the expanding supply pipeline, said to be an important scales-tipping factor, is not expected to immediately trigger a housing correction in the market.

“Buying sentiment is expected to hold up amid strong performance of the equity market as well as a recent upgrade in Hong Kong's GDP forecast for the full year from 2.8% in Q2 2017 to 3.5% in Q3 2017 according to Oxford Economics. Hiring intentions are also positive, even with the city's unemployment level standing at just 3% as of October, the lowest three-month period figure since February 1998,” said Ingrid Cheh, associate director of research department at JLL.

Average residential property values have increased by 13% in the year-to-date, on track to grow 15% for the full year, according to JLL.

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