Tiny flats flood­ing HK prop­erty mart

New Straits Times - - Business -

HONG KONG: Tiny flats are flood­ing the city as de­vel­op­ers rush to tar­get first-time buy­ers strug­gling to get into the world’s prici­est mar­ket.

In­ven­to­ries of new flats, smaller than 431 sq ft, rose to 1,400 at the end of June, ac­cord­ing to Cen­taline Prop­erty Agency.

Wong Le­ung-Sing, an as­so­ciate di­rec­tor of re­search, said the num­ber might rise to 2,000 by year-end, the high­est in data that started in 2014.

The fig­ures in­clude dwellings yet to be com­pleted.

The wave of smaller flats was tes­ti­mony to the price surge that has put big­ger houses beyond the reach of many buy­ers.

De­vel­op­ers built 2,346 pint­sized flats in the first five months, or 60 per cent of last year’s to­tal. An­nual con­struc­tion surged more than 500 per cent from 2011 to last year.

While de­vel­op­ers can cut prices to clear in­ven­tory, some an­a­lysts are con­cerned that buy­ers could end up with units they can’t re­sell. Bloomberg

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