Hong Kong developers rush new flats as sentiment lifts, pressuring fragile recovery

Developers, including Wheelock Properties and Kerry Properties, are pressing ahead with large-scale launches, adding new supply on top of still-elevated inventory from previous years.

Kerry said on Tuesday it planned to launch at least three projects involving about 3,376 units this year, including La Montagne phase 4B at the Southside, parts of Lohas Park phase 13 in Tseung Kwan O and a development on Hung Fook Street in To Kwa Wan.

Wheelock, meanwhile, said it would introduce five new projects totalling about 1,000 units, starting with phase 6 of its Southside development, which would offer 617 flats in the first quarter.

That inventory overhang is expected to persist in 2026, even as discounts gradually narrow. Praveen Choudhary, head of Hong Kong real estate research at Morgan Stanley, said potential housing supply could reach about 28,000 units next year, but actual launches were likely to total around 14,000 to 15,000 units, broadly in line with average absorption over the past five years.