Hong Kong Housing Department: The potential supply of first-hand private residential units is expected to decrease to 101,000 units in the next 3 to 4 years, reaching a low not seen in the past three quarters.

The latest data from the Hong Kong Housing Authority shows that as of the end of March 2026, the potential supply of newly built private residential properties in the next 3 to 4 years recorded 101,000 units, a decrease of 3,000 units compared to the previous quarter, reaching a low level in nearly three quarters. The decline in supply is mainly attributed to a significant digestion of existing unsold units in completed buildings, reflecting a continuous reduction in inventory amid a warming market. The data indicates that the number of unsold units in completed buildings from the previous quarter has significantly decreased by 4,000 units, a drop of nearly 20%, to 19,000 units, marking the first time in nearly 7 quarters to fall below the level of 20,000 units. As for units under construction but not yet sold, there is a slight increase to 62,000 units, an increase of 1,000 units compared to the previous quarter. The number of approved but not yet started "matured sites" remains unchanged at about 20,000 units. By supply classification, matured sites, new projects, and unsold units in completed buildings together total 101,000 units, indicating that developers are accelerating the sale of completed inventory while maintaining a steady pace of new project construction. In terms of construction and completion, the first quarter of this year saw 4,100 units of private residential construction, more than doubling the significant bounce back from the fourth quarter of last year, reflecting developers speeding up the pace of construction following a warming housing market. However, the number of units completed during the same period only reached 1,600 units, a sharp decrease of about 68.6% compared to 5,100 units in the fourth quarter of last year.