Slow down of launches to spur competition in the residential market: JLL

2022 saw the number of applications for pre-sale consent surge to 7,094, the highest ever recorded. 

Hong Kong is set to face a more competitive residential market for 2H 2022 due to the delay of new launches. 

According to a statement by JLL, the fifth wave of the pandemic and a record-breaking number of applications for pre-sale consent are the reasons for these delays.

"While the expected boom in new launches will provide more options for homebuyers, developers will likely adopt a more competitive pricing strategy. Subject to the economic conditions at that point, attractive pricing should theoretically contribute to the transaction volume and improve market sentiment post-fifth wave. Meanwhile, with activities focusing on the primary market, the secondary market volume will likely be compromised. Pricing will also stay sticky with volume hovering at low levels,” said Norry Lee, Senior Director of Projects Strategy and Consultancy Department, JLL.

In 2022 January, the highest ever number for applications for pre-sale consent was recorded at 7,094. These applications normally take six months to a year to be issued. 

Estimates from the property research group also pointed to an estimated 20,000 units set to be issued with pre-sale consent for this year.