Zhongyuan Real Estate releases statistics on new private residence sales in the second quarter, selecting 350 new residences, with a total of 131,455 units, 109,617 registered sold units, and 21,676 in stock. In the quarter, there was a 313 unit increase in stock, up 1.5% overall. The inventory ratio for the second quarter was 16.5%, a 0.3 percentage point decrease from the previous quarter. While the inventory and inventory ratio remained stable, they were the second highest since 22,485 in the fourth quarter of 2003 and the third highest since 17.3% in the fourth quarter of 2013.
By regional statistics, Kowloon's stock rose by 383 units in the quarter due to the sale of several large new properties, now standing at over 0.01 million units, reaching a new high for the first time in 24 and a half years since statistics were collected in 2000. The New Territories inventory increased by 67 units in the quarter, with 9,121 in stock. The inventory in Hong Kong Island fell by 137 units in the quarter, with 2,357 in stock. The regions with the most inventory in the second quarter include Wong Tai Sin (3,894 units), Tseung Kwan O (2,162 units), Yuen Long (2,127 units), Kwun Tong (1,871 units), Tuen Mun (1,536 units), Ho Man Tin (1,536 units), and Cheung Sha Wan (1,487 units).
According to the developers, the stock numbers of three major developers' new projects increased in the quarter. Sun Hung Kai (00016.HK) had the most significant increase, up 476 units to a total of 3,641. Henderson Land (0012.HK) increased by 457 units, now with 1,828 in stock. The six major developers all experienced a decline in stock in the quarter. Sino Land (0083.HK) had the biggest decrease, down 213 units to 1,572 units.
Yang Mingyi, Senior Joint Director of the Research Department at Zhongyuan Real Estate, pointed out that the inventory of new private residences in the second quarter increased slightly, reflecting a shift to optimism in the market after the government's comprehensive lifting of real estate cooling measures at the end of February. In addition, developers are promoting property sales with pricing strategies, resulting in solid sales for several new properties and inventory units, causing inventory units to increase only slightly. However, the inventory units remain high for the fourth consecutive quarter, at a risky level of over 0.02 million units. As a large amount of purchasing power has already been absorbed in the first half of the year, starting in June, the absorption rate has slowed significantly. It is estimated that inventory levels will remain above 0.02 million units this year.