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Q3 construction of private housing units soars

Updated: 2010-10-23 06:53

By Oswald Chen(HK Edition)

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The construction and completion of private residential units in the city registered strong quarter-on-quarter growth, according to figures released Friday by the Transport and Housing Bureau (THB).

The statistics show that work commenced on 5,100 private residential units in the third quarter to September 30, a 104 percent increase from 2,500 units in the second quarter. Meanwhile, another 4,100 units were completed in the third quarter, rising 95 percent from 2,100 previous quarter.

Centaline Property Agency Research Associate Director Wong Leung-sing said the reason for the increase was down to a combination of factors - chiefly the government's determination to increase land supply as well as new guidelines to take effect in April 2011 that will restrict the development of "inflated buildings".

Wong added that the local property boom is another cause of the construction surge, which he expects to continue in the months before the "inflated buildings" measures take effect. He forecast a full-year total of 15,000 private residential units being constructed and 15,800 completed.

Figures for the first three quarters showed construction of new flats was up 43 percent year-on-year at 11,700 units - a three-year high. Completed flats rose 54 percent to a four-year high of 11,100 units.

THB statistics also showed that the total flat supply in the primary market, including unsold completed flats and units under construction, amounted to 51,000 units as of end-September this year.

Cheung Kong (Holdings) Executive Director Justin Chiu predicts that both construction and completion rates in the city are likely to see an increase in the next year, with the latter at around 17,000 to 18,000 units. He added that Cheung Kong will launch five residential projects next year, providing another 3,000 to 4,000 units on the market.

However, Buggle Lau, chief analyst at Midland Holdings, said "that the acceleration of private residential flat construction will not impose immediate pressure on home prices."

China Daily

Q3 construction of private housing units soars

(HK Edition 10/23/2010 page2)

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