<div id="readability-page-1">Hong Kong developers released nearly 300 new flats to the market amid enthusiastic demand from potential homebuyers as the latest official data show completion of private residential units is set to decline this year and next. As of 3pm, 138 out of 218 units at the One Victoria Cove Phase I in Hung Hom, jointly developed by Henderson Land Development, Hysan Development and Empire Group, were sold, while at the Pavilia Farm III atop Tai Wai station in Sha Tin by New World Development (NWD) and MTR Corporation, 75 out of 78 flats had found buyers by 5pm, according to agents. The brisk sales came amid an estimated 8 per cent decline in the completion of new private residential units this year compared to the previous year, according to the latest data from the Rating and Valuation Department (RVD). “Supply contraction is becoming the main theme for the next two years,” said Derek Chan Hoi-chou, head of research at Ricacorp Properties. “This three-year trend of declining supply, coupled with relatively low interest rates, a stable financial market, and sustained purchasing power, is expected to support a 15 per cent increase in property prices for the year.” There were 18,448 private homes completed by developers in 2025, down by 24 per cent from the previous year, according to the RVD. This will further decline to an estimated 16,975 units this year and 15,362 in 2027. Hong Kong’s residential sales hit a four-year high in 2025 with 62,832 units changing hands, according to the Land Registry. Along with the higher sales, prices of second-hand units rose by 3.63 per cent, according to the RVD. With improved sales and rising prices, the city’s residential property market officially reversed a three-year slump. The downturn was mainly triggered by a tightening monetary stance after the Hong Kong Monetary Authority increased base rates on 11 occasions between March 2022 and July 2023, taking them to the highest level in nearly two decades, in lockstep with the US Federal Reserve. A supply glut of new private residential units, which reached a record high of 24,300 in 2024, also weighed on the market.  The declining supply is forecast to give developers time to dispose of new completed units, allowing them to reduce discounts extended to buyers to dispose of unsold stock, which could in turn, boost prices in the resale market. At the One Victoria Cove Phase I project, buyers could choose a flat with layouts of two to three bedrooms and sizes ranging from 339 sq ft to 642 sq ft. Discounted prices started from HK$6.38 million (US$814,000) and a discounted price per square foot of HK$17,365. More than 7,600 applications were received on Friday night for the batch of units for sale, representing an oversubscription of more than 33 times, the developers said. One Victoria Cove is the first large-scale inland-to-waterfront major network project in the Urban Renewal Authority’s Victoria Cove Area in Hung Hom and is close to the MTR’s To Kwa Wan station. Meanwhile, at the Pavilia Farm III, flats made available to buyers comprised units with layouts of one to two bedrooms, ranging in sizes of 307 sq ft to 534 sq ft. Discounted selling price starts at HK$7.89 million and discounted selling price per square foot at HK$21,928. After closing the registration period on Friday evening, the latest sale received more than 8,200 applications, representing an oversubscription of over 108 times, NWD said. “Primary market transactions have reached nearly 1,600 units so far in April and the launches of multiple new projects have received strong demand from buyers,” said Louis Chan, vice-chairman and CEO for residential, Asia-Pacific, at Centaline Property Agency. “The total first-hand sales for the month could surpass 2,200 units.”</div>

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<p>Hong Kong developers launched nearly 300 new flats amid strong demand, with significant sales reported at One Victoria Cove and Pavilia Farm III. The completion of new private residential units is projected to decline by 8% this year, leading to a forecasted 15% increase in property prices. The residential market has rebounded, with sales hitting a four-year high in 2025. The declining supply allows developers to reduce discounts, potentially boosting resale prices. The oversubscription for new units indicates robust buyer interest, with applications exceeding 33 times for One Victoria Cove and 108 times for Pavilia Farm III.</p>

Hong Kong developers clear stock amid strong demand and shrinking supply