For the first time in more than a decade, a residential site on the island of Peng Chau off the northeastern coast of Lantau Island has been bought by a major developer.
But Ray Leung, who owns an apartment with sweeping sea views on the tiny island, does not expect Sino Land's foray to inject new life into the stagnant property market, where prices have consistently lagged Hong Kong Island's.
In 1993, Leung paid HK$800,000 for a 350 sq ft holiday home with a 350 sq ft terrace and a 350 sq ft roof in Nam Wan on the island's southern tip. 'The view is excellent, but not the valuation,' he said. 'And I don't expect that any big names like Sino Land marching into the island will boost prices.' Unlike the static valuation of his holiday home, the value of his 800 sq ft home in Serenade Cove on Castle Peak Road has surged by 74 per cent to HK$4 million since he paid HK$2.3 million for it in 2006.
Sino Land said last week that it had bought a 49,127 sq ft waterfront residential site at Peng Lei Road on Peng Chau for HK$19 million, or HK$516 per square foot. The price tag was 47 per cent below the market expectation of HK$36 million.
Leung said he had been leasing his flat in Peng Chau to a friend for about HK$2,000 a month. 'That is lower than the market rent, as I don't want to let it to someone I don't know.' He has no intention of selling the flat, however, since the price he might obtain would be insufficient to buy another place in Hong Kong with panoramic sea views. 'And it has good fung shui,' Leung said.
An agent at Cheuk Wai Property in Peng Chau said there had been no increase in inquiries from prospective buyers in the area since the news of Sino Land's acquisition.