Hong Kong developers regain pricing power amid firmer demand

Hong Kong developers have priced new units 7 to 36 per cent higher than before as demand firms up.

According to JLL data, prices for new units launched this year in Tseung Kwan O, Wong Chuk Hang and Tai Wai averaged about 15 per cent above lows over the past four years.

Norry Lee, senior director of projects strategy and consultancy at JLL, said housing prices bottomed out in March last year and have since staged a gradual recovery, supported by interest rate cuts, the return of mainland Chinese buyers and improving market sentiment.

Developers are no longer relying on discounted pricing to drive sales, with some units in popular projects recording double-digit price increases. Savills noted that prices were also ticking up in successive batches of units offered at new projects.

For example, average discounted prices at Grand Seasons in Tseung Kwan O were between HK$14,000 and HK$15,000 per square foot when it launched in January 2025. The latest batch at neighbouring La Mirabelle I early this year was more than 10 per cent higher, at around HK$15,500 to HK$16,000 per square foot.

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