While home buyers will have more new launches to choose from, the low stock level could mean that popular areas are likely to be snapped up quickly. ERA’s Mak said that developers are unlikely to lower prices at their property launches in the near future given that their inventory of unsold housing units is diminishing in the face of strong demand.
Meanwhile condominium construction costs have risen 22% from the start of the pandemic in Q1 2020 to mid-2022, according to construction and property consultancy Rider Levett Bucknall.
Even if developers were to sell about the same number of housing units in 2023 as they did in 2022, their inventory would still remain below 10,000 units throughout the year, said Mak.
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