2025-04-15 28Hse Editor
According to a research report by Centaline Property, 83 cancellations of new-home transactions were recorded in Q1 2025, a 20.2% decrease compared to 104 cases in Q4 2024 and a significant 46.5% drop from 155 cases in the same period last year. Centaline noted that 56 of these cancellations were for large deposits, marking the third consecutive quarterly decline in this category. The proportion of large-deposit cancellations fell to 67%, the lowest in seven quarters since Q2 2023.
Conversely, small-deposit cancellations have been on the rise for three consecutive quarters, reaching 33% in Q1 2025, the highest in seven quarters. This trend reflects the impact of the Hong Kong Monetary Authority's relaxation of mortgage rules for uncompleted flats, which has reduced the risk of cancellations by buyers who purchased properties at peak prices. Many of these projects have already been completed, and most buyers opting for cancellations have finalised their decisions.
With developers maintaining restrained pricing strategies due to ample new-home supply and stable property prices, the trend of cancellations is expected to cool further. Centaline forecasts that the total number of cancellations in 2025 will drop to around 300, a 33% decline from 448 cases in 2024.
Of the 83 cancellations of private new-home transactions recorded in Q1 2025, 44 units (53%) were successfully resold by the end of March, maintaining the same resell rate as Q4 2024. Some developers opted to relaunch canceled units at reduced prices to attract buyers, keeping the resell rate above 50% for the second consecutive quarter.
Among the eight projects with the highest number of cancellations in Q1 2025, five had resell rates exceeding 60%. Sai Kung’s Mount Pavilia topped the list with 11 cancellations, followed by The Quinn Square Mile in Tai Kok Tsui with 9 cases. Both projects primarily involved large-deposit cancellations, with low resell rates of 27% and 33%, respectively.
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