Property data: Deputy Commissioner of Rating & Valuation Tang Ping-kwong announces the preliminary findings of the HK Property Review 2010.

Private residential flat completions are due to rise to 14,260 units this year and to 10,960 next year, according to the Rating & Valuation Department's Hong Kong Property Review 2010.

Deputy Commissioner of Rating & Valuation Tang Ping-kwong today said 14,260 flats are due for completion this year - 68% in the New Territories with Yuen Long and Tseung Kwan O contributing 27% and 22%.

A further 10,960 units will be supplied in 2011 - 75% in the New Territories with Sha Tin and Tseung Kwan O contributing 57%.

There were 7,160 unit completions last year. Of them 57% were in the New Territories, 25% in Kowloon and 18% on Hong Kong Island. Sha Tin provided the largest number of new units, at 33% of overall completions, followed by Kowloon City at 14%.

Take-up in 2009 was 11,090 units, 61% higher than the level in 2008. Year-end vacancy fell to 47,350 units, or 4.3% of total stock. About 2,000 vacant flats were not yet issued with Certificate of Compliance or Consent to Assign, and could not be occupied.

"After a brief downward adjustment in the second half of 2008, prices in the secondary market climbed from quarter to quarter and returned to the pre-crisis levels. The overall price index for last year's fourth quarter registered a growth of 23% from a year earlier," Mr Tang said.

"The rents continued to fall in last year's first quarter but started picking up in the second quarter. Overall, the rental index in the fourth quarter crept up by 2% over the same period of the previous year."

Private-office completions in the ensuing years are expected to hover at 122,000 square metres in 2010 and 130,000 square metres in 2011.

Grade-A space forecast completions in 2010 are 113,000 square metres, all in non-core districts, and Kowloon will provide about 70%.

In 2011, Grade-A completions will amount to 103,000 square metres, of which 64% will be in Kwun Tong and 30% in Central.

Grade-B space forecast completions will be around 7,000 square metres in 2010 and 27,000 square metres in 2011, whereas Grade-C sub-sector will only see 2,000 square metres coming on stream in 2010.

Office completions last year were 151,000 square metres, down 56% from the previous year. Grade-A space completions were 129,000 square metres and all were located in non-core districts with 40% coming from one development in Yau Tsim Mong. Grade-B and Grade-C completions were 19,000 square metres and 3,000 square metres.

Overall take-up turned negative and recorded a drop of 101,000 square metres in occupied floor space, with 71,000, 22,000 and 8,000 square metres being Grade A, B and C space.

Vacancy increased to 1.083 million square metres, equivalent to 10.3% of stock. The vacancy rate of Grade-A office stood at 11.5%, with Grade B and Grade C at 8% and 8.9%.

Office prices continued with the downward trend at the beginning of 2009 but rebounded in the second quarter briskly, recouping the loss accumulated since the outbreak of the global financial crisis.

Grade-A office prices in last year's fourth quarter were 12% above the 2008 last quarter level. Grade-B and Grade-C office prices showed a rise of 14% and 19%.

Rents stabilised in the second half of the year after shrinking for 10 straight months. However, the rental index for Grade-A office in the last quarter dropped 7%, while Grade-B and Grade-C office rents fell by 10% and 5% compared to a year before.

For more details on the preliminary findings click here.