Tsing Yi estate flat sells for record HK$2.85m

Unable to afford that luxury property on The Peak? Moving downmarket may not be the answer, because Hong Kong's sky-high property prices are spreading to public housing, with a Tsing Yi flat selling for an all-time high of HK$2.85 million.

The rising trend shows no sign of abating, said Patrick Chow Moon-kit, research head with property agent Ricacorp Properties, which compiled the data. He anticipates another record sooner rather than later.

'Home-seekers have been shifting to public housing as private homes become unaffordable. That boosts sales volume and transaction prices of public homes in the secondary market,' said Chow.

In a bid to improve home ownership for lower-income groups, the government launched a Tenants Purchase Scheme in 1998 allowing tenants in Housing Authority estates to buy their flats for much cheaper than the going private sector price.

The record-breaking deal lodged with the Land Registry is for a 626 square foot flat in Cheung On Estate in Tsing Yi, one of the first estates sold under the scheme. The price reflects an average value of HK$4,554 per square foot. The seller bought it from the Housing Authority in June 1998 for HK$220,000, or HK$351 per sq ft.

Cheung On Estate is sought after by homebuyers who cannot afford private homes because it is close to Tsing Yi station on the Airport Express Line and it has a sea view, Chow said.