SHKP, CK Asset, Henderson to dominate 60% of Hong Kong housing amid demand for small units

Three of Hong Kong’s biggest developers – Sun Hung Kai Properties (SHKP), CK Asset Holdings and Henderson Land – are expected to dominate the housing market, as homebuyers increasingly prefer smaller flats amid economic jitters, according to JLL.

The trio were set to deliver 60 per cent of new residential units in 2025 and 2026, up from 40 per cent in 2023 and 2024, according to the property consultancy.

Sales of class A units – measuring 431 sq ft or smaller – accounted for more than 60 per cent of all residential transactions in March, JLL said, up from nearly 50 per cent in 2024. A cut in the stamp duty, announced in February, helped drive those deals.

“Faced with potential interest rate volatility and macroeconomic instability, prospective buyers are increasingly adopting defensive strategies: either postponing purchases altogether or opting for smaller, more affordable flats,” said Norry Lee, JLL’s senior director of projects strategy and consultancy in Hong Kong. “Small lump sum units [have become] a safer choice in uncertain times.”

The Hong Kong government relaxed its housing policies in February by lowering the stamp duty and applying a flat rate of HK$100 for homes worth up to HK$4 million (US$516,100), thus allowing more buyers to enjoy the benefits. The previous threshold was HK$3 million.

SHKP, CK Asset and Henderson will continue to remain the main suppliers of housing units, as mainland Chinese developers and smaller players have steered clear of bidding for residential plots in the city amid a property downturn.