Hong Kong developers test market with 222 units released amid rate uncertainty

Hong Kong developers on Friday released 222 new flats in Kowloon, the city’s largest batch of units on a single day since buyers were warned about the uncertain direction of interest rates. K&K Property launched 122 one-bedroom units at foto+, a single residential tower in Mong Kok close to Olympic station, while Wang On Properties put 100 units up for sale at the Connext project in Wong Tai Sin. By 7pm Friday, 103 of the foto+ units had found buyers, and seven Connext flat were taken, according to agents. Centaline Property Agency, one of the largest property agencies in Hong Kong, expects all units in both projects to sell out on Friday. “This month’s primary market transactions have so far exceeded 1,670, and the total for the month is expected to surpass 2,800, a 17-month high,” said Louis Chan Wing-kit, Centaline vice-chairman and president. So far this year, 5,500 new units have been sold, a 25 per cent increase compared to the same period last year, Chan said. Buyers were equally split between end users and long-term investors, he added. “Transaction volume in 2026 is projected to rise to 65,000 to 68,000 units, with primary market transactions accounting for around 35 per cent,” said Martin Wong, director and East Asia asset-management leader at UK multinational firm Arup. In 2025, 60,047 new and pre-owned homes were traded in Hong Kong, according to official data, with new homes accounting for 20,564 of that total. With foto+ flat sizes ranging from 301 sq ft to 347 sq ft, K&K offered a discount of 12 per cent to eligible buyers. Original prices were between HK$6.58 million (US$840,000) and HK$10.1 million, so after the discounts they ranged from HK$5.79 million to HK$7.17 million. Meanwhile, unit sizes at the Connext project ranged from 200 sq ft to 520 sq ft. With a maximum discount of 30 per cent, the flats are priced between HK$3.99 million and HK$9.49 million, compared with their original prices of HK$5.71 million to HK$13.56 million, respectively. Sales at Connext kicked off at 6pm Friday. The single-tower development offers flats with layouts from studios to three bedrooms. “Developers will continue to offer incentives and financial plans to attract buyers when launching new projects,” Wong said. “In the short term, developers will continue to launch projects at market prices, with their primary task remaining to reduce inventory and improve their financial and cash flow situations.” Price increases are likely to be modest or in the low single-digit percentages, Wong added. The sales on Friday will be followed by 123 units of the Chester project in Hung Hom, Kowloon, being made available by Henderson Land Development. Last Sunday, 93 units at the Deep Water South project in Wong Chuk Hang were put on the market by co-developers Wheelock Properties and MTR Corporation, the first launch since the US Federal Reserve kept its target interest rate in the range of 3.5 per cent to 3.75 per cent last week.