Prices surge in South Bay

PUBLISHED : Friday, 16 October, 2009, 12:00am
UPDATED : Friday, 16 October, 2009, 12:00am

South Bay residential property owners are optimistic about the property market in the area.

'The property prices in the area have been rising non-stop since June, equating to a 50 to 60 per cent rise since the economic meltdown last year,' Joyce Lam, associate director of Savills residential sales, said.

According to Savills, residential property prices in the South Bay area dropped by 10 to 20 per cent from September 2008 to February this year and began to stabilise before rising in April and May, averaging around HK$13,912 per sqft.

Prices soared from June to August, to an average of HK$15,758 per sqft. Now the price per sqft is HK$18,000 to HK$22,000 for a property with a sea view and HK$12,000 per sqft for one without a sea view.

More owners are putting their property on the market after the surge in prices because they see an opportunity to make a profit.

According to Savills, there were 10 property transactions in the area in the stable period in April and May and 29 cases from June to August.

'During the poor economy there was a lack of residential property owners putting their houses or apartments on the market because they knew the value of their property was worth more than what would be offered to them then,' Lam said. 'But now with the recovering economy, there are several owners putting their property up for sale, hoping to make a profit.'

A boutique apartment is now on sale at Splendour Villa, 10 South Bay Road, at HK$32 million. This ground floor property has been on the market for a month and has about 1,300 sqft of gross area including one en suite bedroom with a walk-in closet and one study room. In addition to having a full sea view there is a balcony and an 800 sqft back garden.

Even though the property is not cheap, Savills is confident that the apartment will be snapped up by the end of this year at the asking price because supply of these boutique apartments is low.

'Most of the residential properties in South Bay area are bigger than this apartment at Splendour Villa and apartments that come with a garden are rare so there will be people interested in it,' Lam said.

There are 34 units at Splendour Villa. Six are similar to the one that is on sale and they are occupied.

Another apartment in the South Bay area was sold last week. Also with a sea and greenery view, the 2,790 sqft apartment with four bedrooms at Belgravia sold for HK$57million.