Next year 17,400 flats are expected to be completed, down from 21,200 this year and last year's 26,000, the Rating & Valuation Department's Hong Kong Property Review 2005 says.

Of this year's flats, about 60% will be located in the New Territories, and 20% of those in Tsuen Wan.

Featuring preliminary findings of the department's annual review of the production and activities in the local property market, the document covers the major private property categories, in terms of completions, take-up and vacancy last year, forecast completions in 2005 and 2006, and price and rental data.

The review said last year the take-up was 31,400 units, up 40% from 22,490 units in 2003, while vacancy rate by year's end dropped to 6.2%.

Prices rose significantly at the beginning of last year, consolidated in mid-year and climbed up again in the latter part of the year. In the last quarter, the overall price index grew 29% over a year earlier, large units saw a 42% increase, higher than the 28% rise for small-medium units.

The review said overall private office completions this year are expected to plunge 77%, to 62,000 square metres, but will rise to 105,000 square meters in 2006. Grade A space forecast completions are 57,000 square metres this year, and 66,000 square metres in 2006, both in Central.

Last year, overall private office completions were 279,000 square metres, down 7% on 2003. Prices surged sharply at the beginning of the year, followed by more moderate increases later, contributing to spectacular year-on-year growth for all sub-sectors at the close of the year.

Prices of Grade A offices grew 73% in the last quarter of 2004 over the same period in 2003, while Grade B offices rose 49% and Grade C offices 42%.

Details of the findings can be downloaded here.