Domestic private unit completions this year are expected to stay at a level of about 26,500 units, while next year completions are expected to fall to about 22,000 units.

The Rating & Valuation Department released today the preliminary findings of its annual review of the production and activities in the local property market.

A total of 26,400 units were completed in 2003, down 15% from the previous year. The new supply was located mainly in Kowloon and the New Territories, accounting for 42% and 47% of the total respectively.

District-wise, Tseung Kwan O provided the largest supply, contributing 28% of the overall completions, followed by Yau Tsim Mong and Sham Shui Po, each accounting for another 20% and 21% respectively.

More supply in the New Territories next year

This year, the new supply will be located mainly in Kowloon and the New Territories, with the estimated respective shares being 36% and 42%. Next year, the New Territories will contribute a larger proportion of about 56%, and Kowloon will account for 27%.

Take-up last year was 22,500 units, up 23% on 2002. Year-end vacancy was 68,800 units, equivalent to 6.8% of the total stock. Close to 8,000 of these units were not yet issued with Certificate of Compliance or Consent to Assign, and could not be occupied.

Prices fell in the first half of 2003, but started picking up in August. The price index in the last quarter registered an 8% rise over the third quarter, although it was still 2% below that in the last quarter of 2002.

Rents experienced a moderate decline in the first half of the year, but stabilised towards the end of the year. Rental index in the last quarter of 2003 dropped by 9% from the same period last year.