Hong Kong developers released nearly 300 new flats to the market amid enthusiastic demand from potential homebuyers as the latest official data show completion of private residential units is set to decline this year and next.

As of 3pm, 138 out of 218 units at the One Victoria Cove Phase I in Hung Hom, jointly developed by Henderson Land Development, Hysan Development and Empire Group, were sold, while at the Pavilia Farm III atop Tai Wai station in Sha Tin by New World Development (NWD) and MTR Corporation, 75 out of 78 flats had found buyers by 5pm, according to agents.

The brisk sales came amid an estimated 8 per cent decline in the completion of new private residential units this year compared to the previous year, according to the latest data from the Rating and Valuation Department (RVD).

“Supply contraction is becoming the main theme for the next two years,” said Derek Chan Hoi-chou, head of research at Ricacorp Properties. “This three-year trend of declining supply, coupled with relatively low interest rates, a stable financial market, and sustained purchasing power, is expected to support a 15 per cent increase in property prices for the year.”

There were 18,448 private homes completed by developers in 2025, down by 24 per cent from the previous year, according to the RVD. This will further decline to an estimated 16,975 units this year and 15,362 in 2027.

Hong Kong’s residential sales hit a four-year high in 2025 with 62,832 units changing hands, according to the Land Registry. Along with the higher sales, prices of second-hand units rose by 3.63 per cent, according to the RVD.

With improved sales and rising prices, the city’s residential property market officially reversed a three-year slump.