2024-04-29 28Hse Editor
Number of small units completed hits historical high
(Lai Chi Tin) According to the Rating and Valuation Department’s latest statistics, the number of private housing units completed last year was 21,168 units, a year-on-year (YoY) increase of 47 per cent from 14,386 units in 2021. A 18-year record high, the increase is some 93 per cent higher than the Department’s forecast of 22,800 units to be completed early last year.
In terms of salable area, last year, the largest number of small units of 431 square feet (Class A) or below was completed with 9,881 units recorded, accounting for about 46.7 per cent of the total. It is a significant increase of about 88.2 per cent from 2021, and the highest since 1988.
In addition to the aforementioned Type A units being the largest, 7,668 units of small and medium-sized units (Type B) with an area of 431 to 752 square feet were completed last year, reflecting an increase of about 15.8 per cent YoY.
The New Territories accounted for more than 60 per cent of completed units
Among the three major regions, the New Territories recorded the largest number of residential completions in 2022, with 13,011 units, or 61.5 per cent of the total, while Kowloon and Hong Kong Island recorded 5,694 and 2,463 units respectively, accounting for about 26.9 per cent and 11.6 per cent.
In addition, Director Wong Leung-sing, senior associate director at Centaline Property Research, earlier predicted that the estimated number of private residential completions in 2023 would be 20,377, indicating a slight YoY decline. Wong also pointed out that in the past two years, the number of completions has reached more than 20,000. It is expected that future supply of private housing is expected to stabilize, and the number of new units will remain at 20,000 per year from 2023 onwards.
Liu Jiahui, chief analyst at Midland Realty, said that the number of units on land that have been approved to start construction at any time increased by 6,000 units in the fourth quarter of last year, on a quarterly basis, along with a quarter-on-quarter (QoQ) increase of 1,000 units of existing buildings and an increase of 3,000 units currently in construction. The amount of unsold units are expected to drive a rebound in the supply of first-hand residential units for the next 3 to 4 years.
Number of developed units has risen to 23,000
Liu also noted that although the number of developed units has risen to 23,000 – a record high in over a year – building projects from scratch within a short period of time would still be difficult. Instead, the volume of construction would be a more reliable indicator of the next year’s completion volume.
In the past 5 years combined, a total of 81,000 units were recorded for construction, which means 16,200 units per year on average. It is expected that this batch of units will be completed in the following years. Based on this projection, it is believed that the number of completed units will not increase significantly in the next few years.
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