Midland Realty: Hong Kong's residential property inventory in September ended 5 consecutive quarters of growth, with a 10% decrease on a quarterly basis.

Yang Mingyi, senior co-director of the research department of China Real Estate, pointed out that as of September 2025, there were a total of 269 residential properties in the inventory of primary residential developers, a decrease of 31 or 10% from the previous quarter's 300, ending a five-season consecutive increase, but still the highest in 12 seasons. Among them, the inventory of private residential properties decreased, while public housing inventory saw a slight increase. The inventory of private residential properties was 193, a decrease of 33 or 15% from the previous quarter, while the inventory of public housing properties was 76, an increase of 2 or 3% from the previous quarter. The inventory of private residential properties valued at HK$20 million or less all decreased, with the largest decrease in the inventory of properties priced between HK$7 million and HK$10 million. The inventory of primary residential properties in the three districts of Hong Kong, Kowloon, and the New Territories all decreased, with the reduction in the market area of Hong Kong and Kowloon exceeding 10%. In the third quarter, the atmosphere in the Hong Kong property market improved, with banks taking the opportunity to sell quality primary residential properties, attracting buyers to enter the market, accelerating the consumption of primary residential properties, leading to a decrease in inventory. China Real Estate expects that in the fourth quarter, primary residential developers will continue to release inventory, and the inventory will increase slightly to about 280 properties on a quarterly basis, marking the highest in 13 seasons since the fourth quarter of 2022. In terms of the release price of primary residential properties, in the third quarter of this year, the inventory of primary residential properties with different values of HK$20 million or less all recorded a decrease, except for properties priced above HK$20 million, which remained unchanged. Among them, the inventory of properties priced between HK$7 million and HK$10 million decreased by 35%, the largest decrease, as the number of properties sold was significantly higher than the number of new additions. The inventory of properties priced at HK$5 million or less, HK$5 million to HK$7 million, and HK$10 million to HK$20 million also decreased by 13%-15% due to the higher number of properties sold than added. The inventory of properties priced above HK$20 million saw the number of properties sold exactly offsetting the number of new additions, keeping the inventory flat from the previous quarter. In terms of districts, the inventory of private residential properties in the three districts of Hong Kong, Kowloon, and the New Territories all decreased in the third quarter, with Kowloon seeing the largest decrease of nearly 30%, followed by Hong Kong Island with a decrease of over 10%. The inventory of private residential properties in Kowloon decreased by 29% to 60 properties, while the inventory in Hong Kong Island decreased by 12% to 36 properties. The inventory of private residential properties in the New Territories decreased slightly by 3% to 97 properties.