Hitting an All-Time High

Hong Kong_Night View

In 2017, the performance of the new developments market was stable and robust, with an increase in both the price and volume of units which led to a new historical high. New developments will still be the main focus of Hong Kong’s property market this year with a predicted 100 or more new projects in 2018, which could provide a supply of 30,000 units, with 20,000 to be launched in the New Territories, making it one of Hong Kong's highest supplying districts.

According to property agency statistics, the volume of first-hand transactions in 2017 was 18,502, significantly higher than 2016’s volume of 16,562, signifying a 12% increase. In terms of transaction price, there was a 30% increase from 2016 to 2017, which recorded HK$186.7 billion and HK$242.9 billion, respectively. The first-hand market broke the record two years in a row with an increase of HK$200 billion.

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With the government’s stringent measures still ongoing, the second-hand transaction volume will continue to be affected, making the new developments market the core focus this year. It is forecasted that more than 110 new projects will be available in the market in 2018, providing more than 30,000 units. Undoubtedly, the predicted number could be different from reality with 18,600 being more of a realistic number which would be the same as 2017’s transaction volume of new developments.

This year, the concentration will switch from Kowloon to New Territories with a specific focus on Tai Po, Sai Kung and Tuen Mun; it is believed that the first-hand transaction volume could break the record high again.

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