Hong Kong property: 10,000 new flats set to hit already supply-heavy market in 2025

Low prices will persist as developers offload inventory, but the market will fail to woo investors, according to experts

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A man fishes in view of Pavilia Forest, developed by New World Development in Hong Kong’s Kai Tak area, on July 21, 2024. Photo: Edmond So

Published: 10:00am, 6 Jan 2025

Around 10 large residential projects comprising at least 10,000 new flats will hit the Hong Kong market in 2025 as developers continue price cutting to offload inventory amid easing interest rates and an uptick in buying sentiment.

Builders with new projects expected to launch include Li Ka-shing’s flagship developer CK Asset Holdings, Sun Hung Kai Properties (SHKP), Henderson Land, China Overseas Land and Investment, New World Development (NWD), Sino Land, Kerry Properties and Wheelock Properties.

However, while it is a good time to buy for self-use, that market may still fail to lure investors, industry experts said.

“It may not be a good timing for investors to enter the market now, as the rental carry is yet to turn positive and the capital gain is still on the downside,” said Joseph Tsang, chairman of JLL Hong Kong. “For projects at certain locations, the pricing has been very attractive for end users. Can one really buy at the bottom? I don’t think so.”

Kai Tak, the area of Hong Kong’s former airport, will again be one of the main battlegrounds for new project launches, property agents said.

CK Asset’s Victoria Blossom phase 1 was approved for presale last year, with a total 307 units. SHKP will be launching phase two of its Cullinan Sky project, with 584 units. The largest development on the former runway, 18 Shing Fung Road by Henderson Land and China Overseas Land and Investment, is expected to launch in four phases with a total of 2,060 units.