Hong Kong's Housing Market Sees Surge in Presale Applications

Hong Kong's real estate sector is witnessing a significant surge in presale consent applications, as revealed by the Lands Department. In April, six new projects were submitted for approval, highlighting a growing interest in residential and commercial developments.

One notable project is being developed in Kwu Tung by Wing Tai Properties (0369), alongside prominent figures such as former Hong Kong leader Tung Chee-hwa's family members and former financial secretary Henry Tang Ying-yen. This project is set to offer 765 homes.

Other key developments include Wheelock Properties' initiative in Kwu Tung, which will feature 324 flats, and CK Asset's (1113) project in Kai Tak, expected to provide 307 flats. Additionally, Vanke Hong Kong is planning two phases in Tai Po, aiming to deliver over 1,200 homes in total.

In a major development collaboration, New World Development (0017) has partnered with a unit of the state-owned China Merchants Group to construct a mixed-use project in northern Fan Ling. This ambitious project is slated to offer at least 2,000 homes and is part of the Northern Metropolis Action Agenda, initiated by the Hong Kong government. The site spans approximately 150,000 square feet and will include more than 180,000 square feet of commercial space, making it the largest commercial and residential development in the Fanling North New Development Area.

The project's groundbreaking is scheduled for early next year, with Adrian Cheng Chi-kong, CEO of NWD, emphasizing the synergistic potential between Hong Kong and mainland enterprises. This marks the second collaboration between NWD and a state-owned enterprise under the Northern Metropolis development, following a partnership with China Resources Land (1109) announced in December 2023 for a residential project offering 1,800 flats.

Despite the enthusiasm for new developments, Hong Kong's government has encountered challenges in rolling out the remaining phases of the Kwu Tung North and Fanling North New Development Areas, mainly due to concerns over infrastructure development costs and high interest rates.

In related news, Miami Quay I in Kai Tak, a collaborative project by Wheelock Properties, Henderson Land Development (0012), New World Development, and Empire Group, is set to launch 60 flats for sale this coming Sunday. This highlights the ongoing robust activity in Hong Kong’s housing market, despite broader economic pressures.