Ordinary Gweilo

More poorly thought-out “news” from the SCMP:

Residential construction at lowest level since 1997

Flats being built drop to 8,000 as economic crisis takes toll

Yvonne Liu
Jan 24, 2009

Construction and completion of private residential units in Hong Kong last year slumped to the lowest since records began in 1997, underscoring the severe impact the global economic decline is having on the property market.

The latest figures from the Transport and Housing Bureau show only 8,000 units were being built by the end of last year, 38 per cent fewer than the 12,900 units a year earlier. About 8,800 private project units were completed last year, down 16 per cent from 10,500 units in 2007.

Really?  When did this economic crisis begin, then?  Early enough in the year to make property developers change their plans?  I think not. 

Fortunately they have interviewed one expert who seems to understand what really happened:

Charles Chan Chiu-kwok, an executive director at Savills Valuation and Professional Services, said tight supply was the result of developers becoming more conservative in land acquisitions after property prices jumped sharply in 2007. “They worried the property market would enter a down cycle.”

Mr Chan expects tight supply in the residential market to continue this year.

Property developers in Hong Kong are not daft.  They acquire land when they prices are low and hope to sell when prices are high.  However, that’s not a news story, whereas the global economic crisis is.