More small flats will come up in Hong Kong’s private residential market in next three years, think tank says
- Our Hong Kong Foundation says ‘Class A’ flats measuring less than 430 sq ft will account for 43 per cent of private homes between 2020 and 2024
- That’s up from 34 per cent between 2015 and 2019, according to an analysis of sales brochures, city data and historical figures.
Hong Kong’s private residential market will see more small flats in the next three years, accounting for more than 40 per cent of new homes for sale, according to a think tank.
Our Hong Kong Foundation (OHKF), set up by former chief executive Tung Chee-hwa, estimated that so-called Class A flats – defined by the government as those with a saleable area smaller than 430 sq ft – would account for 43 per cent of completed private homes between 2020 and 2024, up from 34 per cent between 2015 and 2019, and 10 per cent from 2005 to 2009.
“That’s around three standard parking spaces, so it’s pretty small. Most of them will have one bedroom or two small bedrooms, so it’s pretty undesirable and shows that the living quality is deteriorating,” said Ryan Ip Man-ki, OHKF’s head of land and housing research.
The group drew its findings from sales brochures, data from the Buildings Department and historical figures from the Rating and Valuation Department.
In its latest report released on Wednesday, OHKF said developers had more incentive to build smaller flats when housing prices stayed at a relatively high level.
“Since the government relaxed the mortgage requirements for higher-value properties in 2019, some may wonder if this continuous decrease in unit sizes can be alleviated … [but] the potential impact of the [policy] is yet to … be reflected in the average unit size,” the report said.
