Tiny flats flooding HK property mart
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