Analysts expect that the first quarter will see a rise in the number of new private residential projects launched in Hong Kong, not only in terms of price, but also in terms of amenities.
According to data from the Urban Renewal Authority compiled by Huttons, the eight new projects to be launched in the first quarter of this year are expected to provide about 3,275 units.
Of these, 1,252 units are for mass market private housing and 2,023 units are for mid-range private housing. Seven of the projects are larger projects with more than 250 units.
Sidney Lee, Senior Research Director of Hopedale Group, said that the price points of mass private housing are easily accepted by HDB flat upgraders, while larger projects, which can offer more facilities, are expected to be more popular with buyers.
Sun Yanqing, Head of Industrial Research and Consultancy at OrangeEase, also expects a good market response to new projects launched in the first quarter, especially for mass private housing. With the reopening of China, new private residential developments will also attract more foreign buyers.
Among the mass market private developments are the Lentor Hill Residences near the London-based MRT station and The Botany at Dairy Farm, in addition to Sceneca Residence, the first to open this year.
Lentor Modern, the first residential development in the area, was launched in September last year and sold 508 units in its opening two days, equivalent to 84% of the total units in the development, at prices ranging from $1,856 to $2,538 per square foot.
There have been no new projects in the Dairy Farm area in the last two years. The last larger project to be launched was the Dairy Farm Residences.
According to the Urban Redevelopment Authority, the resale price of Dairy Farm Residences last year ranged from $1,359 to $1,895 per square foot.
The Dairy Farm neighbourhood has always been popular with investors and owner-occupiers, but previous launches have mostly sold out, Sun said. And there has been no new supply of projects in District 23 in the past two years.
The launch of Man King Hin will provide an opportunity for buyers who are interested in this area to shop around.
On the other hand, five mid-range private developments will be launched in the first quarter, including Blossoms by the Park in One-North, Tembusu Grand in Tanjong Katong and Terra Hill in Pasir Panjang.
ERA's Head of Industrial Research and Consultancy, Mr Mak Chun Wing, said that among the many private residential developments, apart from those close to popular schools, staff offices and MRT stations, which are more popular with buyers, market supply and selling prices also affect sales.
On whether the high mortgage rates and cooling measures would affect the sales of new private homes in the first quarter, Lee Sze Teck said the current high interest rates would have little impact on buyers as new private homes are on a progressive payment schedule.
Even if the foundation is completed after a year, only 5% of the mortgage will be paid. The market expects interest rates to peak this year and then to come down. In addition, the active HDB resale market has also allowed HDB flat lifters to have more funds.
In the past, it took about three months for the market to adjust to the new cooling measures, said Mr Mak.
For the cooling measures introduced in September last year, those buyers who are in need should have already adjusted their home buying goals and financial budgets and take this opportunity to choose their preferred private homes.
