Zero Presale Applications: What It Means for Buyers

May 14

2 minutes

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In April of the year, the Lands Department monthly report showed that the number of new applications for "Consent to Presell Uncompleted Residential Properties" for private buildings was zero, marking the first "zero application" since November 2024, a gap of five months. What signal does this represent? How should one plan if they want to get on the property ladder within the next six months? Below, we answer common questions in one go.

What does "Zero Applications" signify?

Presale consent form = License to sell uncompleted properties
0 applications = No new uncompleted properties are currently queued for approval
This is a signal that developers are "hitting the brakes" amid high inventory, high interest rates, and incomplete recovery of buyer sentiment
From application to sales launch takes about 18–24 months. If "zero applications" persist for several months, the selection of new properties in 2026 may further shrink

Why Did Developers Suddenly Pull Back?

Unsold inventory pressure remains – slightly higher pricing makes it difficult to move units
Financing costs are still high: HIBOR-linked mortgage caps remain around 4–4.125%, construction loans are expensive, developers prioritize "cost-saving" before launching projects
Waiting to see post-cooling measure digestion rate: Tax reliefs boosted transactions but prices remain in consolidation

What should first-time homebuyers do if they want to buy or upgrade their property soon?

Prioritize ready-to-move-in or nearly completed properties, as developers still offer cash rebates and appliance vouchers to clear inventory.
Budget with a stress test of 4% for HIBOR-linked mortgages to avoid cash flow strain before interest rates drop.

Short-term new property launches may slow down, with inventory continuing to be cleared from existing stock. If the "zero sales" trend persists for several months, new property options may shrink further in about two years. With the slowdown in new properties, some buying demand may shift to the secondary market. Would you choose to buy a property now?