A bull housing market in HK

Jan 11, 2013 - PropertyGuru.com.sg

By Romesh Navaratnarajah:

Home prices across 50 major estates in Hong Kong rose 22 percent in 2012 and is expected to increase further by 10 percent in 2013 despite recent cooling measures introduced by the authorities, said Ricacorp.

In 2H2012, average prices of units at major housing projects stood at HK$7,552 psf (S$1,195 psf), higher than the HK$7,012 psf (S$1,110 psf) recorded in 1997.

Moreover, 12,628 parking spaces were sold last year, rising to a 17-year high and involving HK$8.24 billion (S$1.3 billion). The red hot property market also encouraged developers to roll out five new housing projects comprising 745 units before the Lunar New Year.

For instance, flats at the 28-unit The Grandeur will likely be priced from HK$54 million (S$8.55 million) or up to HK$23,000 psf (S$3,640 psf). The project, which is being developed by China Overseas Land and Investment, offers four-bedders with sizes ranging from 2,800 sq ft to 3,200 sq ft.

Sun Hung Kai Properties (SHKP) is also expected to start selling units at its projects Imperial Kennedy in Sai Wan and Residence 88 in Yuen Long, while Kowloon Development plans to sell 397 units at its two projects in Mong Kok and Tai Kok Tsui.

Meanwhile, 50 units at The Wings project by SHKP were snapped up in just two days. Notably, the average selling price of 38 four-bedroom units rose to HK$11,108 psf (S$2,237 psf) compared to the HK$10,688 psf (S$1,691.59 psf) fetched in the first release.

Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email [e-mail]