New vs old: why new-builds are far outselling used homes in Hong Kong

In recent months, Hong Kong's property market has witnessed a clear shift in sales dynamics, with new-build homes outpacing used homes in terms of sales volume and value. This trend is primarily driven by developers reducing prices on new-build properties to clear inventories ahead of anticipated interest rate hikes. As a result, new homes have become more affordable for buyers, thereby diverting attention and purchasing power away from the sluggish secondary market.

According to Centaline Property data, new residential property sales surged by over 95 per cent in September, reaching approximately 1,500 units with a transaction value of HK$20.88 billion (US$2.66 billion). In contrast, the secondary market saw a decline in sales, with only 3,000 used homes sold in September, marking a 337-unit decrease from July and a value reduction of HK$2.31 billion.

Experts attribute this disparity to developers offering competitive pricing, flexible payment terms, and mortgage incentives, making new homes an attractive option for buyers.

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