A record number of new homes are planned for Hong Kong next year as developers rush into one of the world’s most lucrative market, while Beijing remains on course with currency.
The 74,000 new homes planned and predicted by the government over the next three to four years is a record total since they started counting in 2004, says Wong Leung-Sin, associate director of leading property agent Centaline.
Of these, 60,000 are under construction and 5,000 are completed but not yet sold. “The unsold completed units have been reduced significantly to 5,000 as developers have been aggressively clearing their stockpiles since early this year,” said Mr Wong, whose comments followed Centaline’s report that prices in the city’s secondary market hit a new high last week too, rising 1.71% on the Centaline Leading Index.
Construction has picked up considerably; while 8,300 units were completed in the whole of 2013, well over 12,000 were completed just in the first nine months of 2014.
In mainland China meanwhile, concerns that the flight of capital to overseas property could be damaging the economy have been denied by the State Administrator for Foreign Exchange, who said that China was on target to achieve its aim of equilibrium in its international balance of payments. There were deficits in the Q3 capital and financial accounts but a current account surplus. “In spite of a slowdown in property market, China still had a $520 million net inflow of funds from non-residents to buy houses and a $20.1 billion net inflow of foreign investment in the housing sector during the first three quarters,” said the report.