Hongkongers continue their beeline for One Victoria flats in Kai Tak as cheap funds, economic growth lure buyers into market
- China Overseas Land and Investment (COLI) sold 118 apartments, or a third of the 286 units on offer at One Victoria by 9pm
- The launch was oversubscribed by nine times, receiving 2,800 bids for the 286 flats on offer
Hong Kong’s homebuyers continued making their beeline for the first waterfront flats built on the city’s former airport runway, as low-cost mortgages combined with signs of an economic recovery and easing Covid-19 outbreaks to lure them back into the property market.
China Overseas Land and Investment (COLI) sold 118 apartments, or 41 per cent of the 286 units on offer at One Victoria as of 9pm, sales agents said. The project, built on a strip of land that protrudes into Victoria Harbour, is about 45 minutes walk from MTR Corporation’s Kai Tak subway station. The distance – considered far by Hong Kong standards – did little to deter buyers.
“Kai Tak will be a key area for development, so its sophisticated planning and high quality of property in the area attract investors,” said Sammy Po, chief executive of Midland Realty’s residential division, who estimated that 40 per cent of customers are buying One Victoria as a “long-term investment”.
The One Victoria project comprises 1,059 flats of different sizes, all scheduled for delivery at the end of March in 2023.
The current batch on offer featured units with one to three bedrooms, measuring between 332 square feet and up to 766 square feet 766 sq ft (72 square metres). Prices started from HK$8 million, going up to HK$23.6 million (US$3 million), or HK$28,103 per square foot on average after discounts, almost 22 per cent more than the launch price on June 22.
The continuous flow of financial liquidity will boost Hong Kong’s residential property market, helping owner-occupiers afford new homes through low mortgage rates, while spurring investors to park their capital in fixed assets that generate higher returns.
“Residential property will continue to serve as a tool for [investors] to hedge against inflation,” said Louis Chan, Centaline Property Agency’s vice-chairman and CEO of residential in Asia-Pacific.
The market could get another leg up when Hong Kong’s northern border with mainland China reopens, which would open the doors for tourists, business travellers and investors to re-enter the city.
Hong Kong’s housing prices may increase to a record this month, with sales of new homes expected to increase by 20 per cent to 18,000 units from last year, Po said.
“If the peak of housing prices doesn’t come in July, it will be in August due to various positive factors,” he said. “Housing prices in many countries around the world have risen in the past two years during the easier monetary policy, but Hong Kong had lagged behind. Once the border with the mainland reopens, new capital from the mainland will support the Hong Kong market. ”
