Private Residential Construction Starts Hit 16-Year Low in Hong Kong
AM730 · 1 SOURCESabout 1 hour ago2 MIN
Summary
Hong Kong's private residential construction sector faced headwinds in the first half of 2026, with both construction starts and completions declining significantly year-on-year. According to data released by the Buildings Department, construction starts tumbled to their lowest first-half level in 16 years, while completions fell by nearly a quarter . The June figures showed mixed momentum—construction starts of 344 units represented a 37% drop from May's 542 units, though completions surged over threefold to 3,272 units . An analyst from Ricacorp Properties noted that without major new project launches, construction starts have remained subdued . Looking ahead, the market anticipates approximately 17,000 unit completions for the full year, including several large-scale developments expected to obtain occupation certificates .
Key Points
- In June 2026, two private residential projects with a combined 344 units commenced construction—a 37% decline from May's 542 units
- First-half construction starts totaled 2,667 units, marking the lowest first-half figure in 16 years and representing a 16% year-on-year decline
- June saw 11 private residential projects with 3,272 units completed, a 304% increase from May's 809 units
- First-half completions reached 7,654 units, down nearly 24% from 10,064 units in the same period last year
- By region, New Territories dominated completions with 5,045 units (65.9%), followed by Hong Kong Island with 1,808 units (23.6%) and Kowloon with 801 units (10.5%)
Why It Matters
The decline in construction starts signals a potential supply shortage in Hong Kong's housing market two to three years down the line, which could exert upward pressure on prices and rents. The gap between the Rating and Valuation Department's annual forecast of 16,975 completions and the current trajectory—only 45.1% achieved in the first half—underscores the back-loaded nature of Hong Kong's housing delivery, leaving buyers and tenants in limbo as to when promised supply will materialize .
The decline in construction starts signals a potential supply shortage in Hong Kong's housing market two to three years down the line, which could exert upward pressure on prices and rents. The gap between the Rating and Valuation Department's annual forecast of 16,975 completions and the current trajectory—only 45.1% achieved in the first half—underscores the back-loaded nature of Hong Kong's housing delivery, leaving buyers and tenants in limbo as to when promised supply will materialize .