Mr Chan Wing-kit, Chief Executive Officer of Centaline Property's Residential Division, believes that with the gradual recovery of economic and social activities in Hong Kong, the relaxation of customs clearance measures in the Mainland and the slowing pace of interest rate hikes in the US, the property market sentiment has improved significantly in December, with second-hand price cuts being absorbed.

He believes that as long as the customs clearance is expected to be completed soon, there is a good chance that the property market will experience a "mini spring" before the Lunar New Year, and developers will go all out to push the property market.

According to statistics, as of today, only about 9,000 transactions have been recorded in the first-hand market in 2022, and no new properties are expected to be launched in the rest of this month.

As a result of the fifth wave of the epidemic, developers suspended the launch of new properties at the beginning of the year (only one new property was launched in the first quarter, namely Cheung Sha Wan Ying Chuen by Henderson Land), and property prices plummeted in the second half of the year due to interest rate hikes.

In 2022, there will only be about 27 new flats for sale in the year, involving about 12,030 units.

Compared to 2021, when the first-hand market is blossoming with about 40 new launches involving more than 17,000 units, the number of launches by developers this year has dropped by more than 30%.

On Hong Kong Island, there are only a few super luxury properties testing the waters this year, while on Hong Kong Island, where the price list approach is used, there is a rare "zero launch" this year, which is definitely unprecedented.

In 2021, there will still be 10 new developments on Hong Kong Island for sale on the price list.

According to industry analysis, the supply of first-hand properties on Hong Kong Island has always been low, and developers are waiting for quantity rather than price, and are waiting for the border crossing between China and Hong Kong before selling at a good price.

According to Centaline Property Research, as of December 9, only 321 first-hand private property sales were registered on Hong Kong Island in 2022, a year-on-year drop of more than 80 per cent, and breaking the previous record of 498 recorded in 2008, a record low since records began in 1996.

The sales rate of new properties this year was also unsatisfactory, resulting in a backlog of sales.

According to Centaline Property's first-hand transaction register, a total of 6,817 units were sold in the 27 new properties launched during the year as at the 12th of this month, representing a sales rate of about 57%.

The first five new developments with the highest sales rates are all small properties in the New Territories, including Parklane I in Yuen Long, NOVO LAND Phases 1A and 1B in Tuen Mun, SILICON HILL Phase 1 in Pak Shek Kok, Tai Po, and One Innovale Archway in Fanling, offering a total of 3,518 units, with a cumulative sales rate of 91% to 99% for 3,412 units sold so far.

This shows that the New Territories has benefited from the infrastructure effect and there is no shortage of affordable new developments in the New Territories this year.

The most eye-catching new property this year is NOVO LAND in Tuen Mun by SHKP (012). The first batch of 165 units in Phase 1A was launched in July this year at an average price of only $13,188 per square foot, which is comparable to second-hand properties in the same area.

Together with Phase 1B, a total of 1,624 units have been sold in the two phases, with a cumulative sales rate of 95% and a total of about $9.5 billion, making it the highest selling new property in Hong Kong this year.

Benefiting from the northern metropolitan area effect, Park Century I and II at Kam Sheung Road Station in Yuen Long, a joint venture between Sino Land (083), K. Wah (173) and China Overseas, has become the "King of New Developments" this year, offering a total of 1,520 units in the two phases, with a cumulative sales rate of about 90% to date, generating about $12.5 billion in cash.