Hong Kong Developers Focus on Completed Projects as Pre-sale Applications Surge
In September, Hong Kong saw 3,778 new pre-sale consent applications, a 2.4-fold jump month-on-month, driven by a single Fanling project. Analysts say developers are prioritizing completed or near-completed projects for launch, with pricing expected to stay competitive.
The Lands Department reported that seven new pre-sale consent applications were submitted in September, covering 3,778 residential units, a 2.4-fold increase month-on-month.
Analyst Sung Hin-kiu of Midland Realty noted that the pre-sale period for residential projects is capped at 30 months. He believes developers are applying early to capitalize on the robust primary market and enhance flexibility for future launches. In the near term, developers are expected to focus on selling completed or soon-to-be-completed projects.
Sung observed that pre-sale application activity this year has been more vigorous than in the past two years, reflecting a heated new-home market and faster inventory turnover. However, the sharp rise in September applications was mainly due to four concurrent applications from a single Fanling project, which is unusual. Whether application volumes can be sustained will depend on the type and scale of upcoming projects.
He also mentioned that new-home pricing saw a slight premium earlier this year, but with overall transaction volumes consolidating in the third quarter and price growth slowing, developers are adopting more market-sensitive pricing to attract buyers. He expects new-home premiums to remain at a moderate single-digit level in the short term, with some projects offering slight discounts depending on location or competition. Nevertheless, he emphasized that market purchasing power remains intact.