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Hong Kong’s supply of so-called nano flats to peak this year as government puts minimum size restrictions in place

  • Some 2,015 nano flats, measuring 215 sq ft or less, are expected to be ready this year, according to JLL
  • A minimum flat size of 280 sq ft will apply to residential sites sold through government tender

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A furnished show nano flat measuring 203 sq ft at Wang On Properties’ The Met. Azure residential project. Photo: Xiaomei Chen
Lam Ka-sing

The era of nano flats in Hong Kong is likely to end soon. The availability of such flats is set to peak this year, after the government put a cap on the minimum size of homes late last year, say market observers.

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A total of 2,015 nano flats, with a saleable floor area of 215 square feet or less, are expected to be ready this year, compared with 960 units in 2021, according to JLL. These include 418 units at The Royale in Tuen Mun, 380 units in Manor Hill in Tseung Kwan O and 288 units at The Met. Azure in Tsing Yi.

“We predict the completion of nano flats will peak out this year,” said Ryan Ip, head of land and housing research at the think tank Our Hong Kong Foundation. “Demand for nano flats has decreased after the government relaxed the mortgage requirements for higher-value properties in 2019, and this has been gradually reflected in the building plans of new residential projects.”

The Development Bureau in December announced that a minimum flat size of 280 sq ft will apply to residential sites sold through government tender, in an attempt to regulate the supply of nano flats in the private market. However, private development or redevelopment projects are not affected by this requirement.

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For the flat-size measure to be effective, the government may need to increase the proportion of housing supply from land tenders, said Neon Yiu Ching-hei, researcher at Liber Research Community.

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JLL noted that in addition to the government’s minimum size restriction, other methods can be used to increase the liveable space of residents.

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