Hong Kong's unsold homes reach all-time high as buyers hesitate amid tariff threats
The number of unsold first-hand private residential units in Hong Kong's completed projects rose to a record high last quarter as developers struggled to clear inventory at reduced prices and a global tariff war heightened economic uncertainty.
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There were 28,000 unsold units as of March 31, an increase of 1,000 from the preceding quarter, according to data published by the Housing Bureau on Tuesday. The trend prompted the city's home builders to rein in new launches for the past four quarters, it added.
Since the city's housing market peaked in September 2021, a measure of home prices has slumped by about 29 per cent as social unrest and the Covid-19 pandemic sent the local economy into a tailspin. A recovery over the past six months is in jeopardy, after US President Donald Trump rolled out his so-called reciprocal tariffs on April 2 on most of the nation's trading partners.
'The escalating US tariff policy is negatively impacting homebuyer sentiment in Hong Kong,' Knight Frank said in a report on Tuesday. 'Amid macroeconomic uncertainties and currency depreciation risks, buyers are likely to be more cautious, potentially delaying purchases.'
Buyers snapped up all the units on sale last weekend at Sierra Sea, a project developed by Sun Hung Kai Properties, Photo: Jonathan Wong
The Housing Bureau estimated that some 105,000 first-hand private residential units could add to the existing supply over the next four years, based on development plans up to March this year. That would be the lowest projected supply in seven quarters, aided by a rebound in home sales this year.
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