Hong Kong homebuyers flock to new launches as flats sell out swiftly

Hong Kong homebuyers snapped up most of the new flats released on Thursday, with developers beginning to ramp up new construction amid sustained housing demand. All 120 units at the One Victoria Cove I in Hung Hom, jointly developed by Henderson Land Development, Hysan Development and Empire Group, were sold by 5.20pm, according to agents. Meanwhile, New World Development (NWD) and MTR Corp’s Pavilia Farm III above Tai Wai MTR station found buyers for 19 of the 45 units as of 6.50pm. Most recent flats offerings have seen robust sales. Earlier this month, the first two batches of Pavilia Farm III, and the previous round of One Victoria Cove I sold out. This followed a full take-up of flats at La Mirabelle I in Tseung Kwan O by Sino Land, Kerry Properties, K. Wah International, China Merchants Land and MTR Corp in late March. NWD said in a statement on Thursday that it had generated more than HK$4.8 billion (US$610 million) from the sale of 295 units at Pavilia Farm III in a span of 11 days. “Sales of new homes in the first four months of 2026 reached about 8,500 units, of which around 3,000 flats came from completed projects, mainly in areas such as Kai Tak, Tseung Kwan O and Sai Sha,” said Norry Lee, senior director for projects strategy and consultancy at JLL. The sales reduced developers’ unsold inventory to below 20,000, back to 2023 levels, Lee said. As a result, developers have started building more new flats. The number of private housing units under construction rose for two consecutive quarters to 4,100 at the end of the first quarter this year, up from 800 in the third quarter of 2025, according to data from the Housing Bureau. “As recent sales of new launches remain strong, the potential supply of new flats over the next three to four years is expected to fall below 100,000 units in the second half of the year,” Lee said. As developers made limited land acquisitions over the past three years, only 1,600 new private flats were completed in the first quarter of the year. “Developers have turned active in the land market since early this year,” Lee said. “We expect the completion of new flats will return to a healthy level in 2028.” The bureau estimated that 101,000 new private units would be available in the coming three to four years, lower than the estimated 104,000 units at the end of 2025. “The reduced inventory in the past quarter was primarily due to the property market recovery and developers’ strategy of offering units at market prices,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties. “The reduced pressure from unsold units has significantly lessened developers’ urgency to undercut prices, positively impacting the overall price increase.” At One Victoria Cove I on Thursday, units on sale ranged from 301 sq ft to 642 sq ft with two to three-bedroom layouts. They were sold at discounted prices of between HK$6.85 million and HK$14 million. “A significant proportion of buyers [at One Victoria Cove I] are investors, reflecting strong interest in projects offering small flats,” Lee said. “Such large developments are more attractive to tenants. Also, the project is located near the Hong Kong Polytechnic University and Hong Kong Metropolitan University, where leasing demand from non-local students continues to grow.” The latest batch of flats at Pavilia Farm III consisted of one and two-bedroom units ranging from 359 sq ft to 509 sq ft and priced from HK$9.22 million to HK$15.37 million.