Hong Kong sees worst sales of newly completed homes since 2019

HONG Kong property developers saw the lowest sales since 2019 for new residential units completed as expensive borrowing costs weigh on the market.

Builders sold just 55 per cent of apartments completed in the first six months, compared with the average sell-through rate of 78 per cent in the last five years, according to data from real estate agency JLL.

The slowdown in residential sales “reflects most buyers have adopted a wait-and-see attitude and are reluctant to buy flats as they anticipate housing prices will drop”, said Norry Lee, a senior director at JLL in a statement. “The new mass residential projects have to offer a bigger discount to lure buyers.”

CK Asset Holdings has been selling apartments this month at the lowest price in seven years, pressuring other developers to follow suit in a competitive market.

Higher interest rates have deterred buyers from entering the market, with secondary home prices dropping to February levels after a brief recovery. JLL forecasts average home values to drop as much as 10 per cent in the second half. BLOOMBERG