More newly-built flats will enter the city’s residential market in the first half, adding to unsold units from the past two years. Home prices, already near the lowest in seven years, are likely to weakenfurther, analysts say.
Hong Kong home sales hit a 20-month high in March, as improved sentiment and a property tax cut boosted transactions, according to property consultancy CBRE.
Higher costs driven by a surge in materials prices are likely to make property developers more restrained when they are bidding for land, according to analysts.