In an unexpected twist, Hong Kong has experienced a remarkable spike in housing completions, despite ongoing struggles in the property market. In 2024, private housing completions skyrocketed by a staggering 75%, totaling an impressive 24,260 units, marking the highest annual figure in recent years.

The driving force behind this surge can be traced back to concentrated supply in key areas such as Kowloon City, Yuen Long, and Tuen Mun, which collectively contributed to 66% of all new housing units. However, this influx of housing did little to restore confidence in the market as home prices continued to face downward pressure, plummeting by 7.2% year-on-year, according to the latest Hong Kong Property Review 2025.

The soaring vacancy rate paints a troubling picture, climbing to 4.5% with nearly 58,000 units currently unoccupied. Shockingly, over 14,000 of these remain unsellable, hampered by the absence of crucial compliance certificates. The situation underscores a significant disconnect between supply and demand, leaving many properties idle.

Interestingly, while home prices have been on the decline for three consecutive years, transaction volumes have taken a surprising turn, rising by 23%. Developers have resorted to aggressive pricing strategies to clear their inventory, which has successfully tapped into pent-up demand, according to the report.

In a silver lining amidst this housing crisis, the rental market has shown resilience, outperforming sales. This trend has been bolstered by an influx of non-local talent entering the city and a noticeable shift in consumer behavior from purchasing properties to opting for rentals. By December, residential rents saw an uptick of 3.3%, offering a rare beacon of optimism in an otherwise challenging property landscape.

As Hong Kong navigates its complex housing market, the question remains: Can the recent record housing completions pave the way for a sustainable recovery, or will the persistent issues of empty properties and declining prices continue to overshadow potential growth? Stay tuned for updates on this developing story!