According to Yang Mingyi, Senior Joint Director of Research at Midland Realty, this phenomenon is attributed to the impact of continuous interest rate hikes and the downturn in the property market, resulting in weaker-than-expected new property sales, exacerbating the backlog situation and pushing the number of unsold units perilously close to the 20,000 mark.

The slowdown in the local economy and the ongoing downward adjustment in the property market have further intensified the sales pressure faced by developers.

Over the past period, the persistent increase in the number of unsold units has raised concerns, with expectations that the backlog will continue to rise in the fourth quarter, making the situation of the first-hand property market even more severe, demanding significant attention.

Statistics indicate that a total of 332 new developments were included in the survey for the third quarter of 2023, with a total of 125,369 residential units, of which 104,674 have been sold.

However, the backlog of 20,483 unsold units remains a serious concern, representing an increase of 1,398 units compared to the previous quarter, marking the highest level in nearly 20 years since the fourth quarter of 2003.

Simultaneously, the proportion of unsold units has shown a consecutive increase for two quarters, reaching 16.3% in the third quarter of 2023, an increase of 1.2 percentage points from the previous quarter, representing the highest level in nearly 10 years since the fourth quarter of 2013, indicating an exacerbation of the market's imbalance between supply and demand.

Regionally, the backlog in the New Territories has notably increased, with Yuen Long and Tseung Kwan O being the most prominent areas. Kowloon has also experienced a significant increase in the backlog, primarily concentrated in the Wong Tai Sin and Hung Hom areas. On the other hand, the increase in the backlog in the Hong Kong Island region has been relatively minor, mainly influenced by the Aberdeen area.

In the third quarter of 2023, the areas in Hong Kong with a more severe backlog include Wong Tai Sin, Tseung Kwan O, Yuen Long, Kwun Tong, and Tai Po.

In terms of different developers, the number of unsold units under Henderson Land's new development increased by 497 units to reach 3,106 units quarterly. Sun Hung Kai Properties' backlog increased by 480 units, totaling 2,054 units.

In contrast, Cheung Kong Properties saw an increase of only 14 units in the backlog, reaching 304 units. New World Development, on the other hand, saw a decrease of 376 units in the backlog, currently totaling 3,191 units. These data points indicate the continued volatility in the Hong Kong property market and the significant challenges faced by developers.