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Hong Kong Property Market - Yr.2019 Oct: Average price per sq feet $11087 1.03%   (last month:$10974)
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205 Private Housing Units Were Completed in August, the Least in Half Year.

Image Caption
2019-10-09-(Wed)
【28Hse.com】  
It will be difficult to catch up with the annual target since the completion number in the first eight months was only 32% of the annual completion prediction.

Hong Kong Wen Wei Po (By Ngan LunLok)

The completion of private housing in Hong Kong continues to be low, and the number of residential housing completion this year is difficult to meet the expectation. According to “Hong Kong Property Review Monthly Supplement" published by the Rating and Valuation Department, the private housing completion in this August was only 205 units, down about 61% from 526 units in July, and it was the least in the half-year after this February. In summary, the total completion in the first eight months of this year was only 6,465 units, which is only 32% of the annual 20,415 units predicted by RVD, so it is quite difficult to reach the target and need to speed up chasing backward.

Going through the data, there had been 11,566 completed private housing units in the first eight months of last year, meaning that the number in the first eight months of this year was about 44% less than that of last year. Among the 6,465 units completed in the first eight months of this year, New Territories includes 2,821 units of the most, followed by Kowloon and Hong Kong Island with 2,493 units and 1,151 units respectively. Most of the completed units are small size housing units, and Class A housing units in a usable area of or under 430 sq ft are 3,944 units, accounting for 61% of the completion in the first eight months.

In terms of rental return for private housing, there is rising signs of rental return in response to the recent situation of property price down while rent up, and the rental return for Class A housing in or under usable area of 431 sq ft had risen to 2.7 percent in August from 2.6 percent in July, back to the level in February this year; The rental return for Class B housing in 431-752 sq ft also raised from 2.3 percent in July to 2.4 percent.

The rental return for large unit hit a three-year high.

The rental return for the remaining medium to large units were all about 2.2 percent, no change or slightly rose by month, while the rental return for units in or above 1,722 sq ft had risen to about 2.2 percent in August from 2.1 percent in July, back to the level of August 2016, which means it was a three-year high.

The number of private housing completion continued to slow down. In July, the number of housing completion was only 526 units, a decrease of 70% month-on-month, and the cumulative number in the first seven months was only 6,260 units, which was 31% lower than 9,152 units in the same period last year, also it was a four-year new low after there had been 5,814 units in the same period 2015.

However, the number of stock units in the market has been decreasing. The Senior Co-director of Centaline Research Department, Woo LeungSing pointed out earlier that, the completed number of new housing in or under three-bedroom units of Class A and B had been 25,044 units from 2017 to 2018, with 24,070 units among had been sold, and this number accounts for 96.1% of the total. At present, there are 974 remaining stock units, with a ratio of 3.9%, reflecting the satisfactory progress in the sales of starter homes.
Starter home is in hot sale. Over 90% of Class A and B housing units had been sold.

20,548 new housing units of or under three-bedroom in Class A and B have been launched from 2019 to 2020. Among them, 17,336 units have been sold, accounting for 84.4% of the launched units. On sale housing includes 3,212 units, accounting for 15.6% of the launched units.

As of August 2019, 45,592 new housing units of or under three-bedroom in Class A and B have been launched from 2017 to 2020. Among them, 41,406 units have been sold, accounting for 90.8% of the launched units. On sale housing includes 4,186 units, accounting for 9.2% of the units had been sold, and the percentage has been less than 10% for two consecutive months. In the guidelines from REDA earlier, the new housing units of or under three-bedroom less than 753 sq ft (ie Class A and B) should be put on sale by the method of asking price.
Translated by 28Hse.com . All right reserved.