Land of opportunity
The fast-developing area faces a major transformation to meet housing demand.
Multibillion-dollar infrastructure projects combined with new property developments mean the New Territories will become the biggest supplier of homes next year.
The area has grabbed plenty of headlines this year for soaring prices and big demand for homes. Sun Hung Kai Properties (SHKP) fetched top-of-the-range prices with Century Gateway in Tuen Mun. A 1,128 sq ft apartment sold for HK$13.80 million, or HK$12,230 per square foot.
Nevertheless, analysts warn that 2013 could be the year when the market runs out of steam.
The latest government cooling measures are expected to mainly affect mainland buyers.
Veteran surveyor Tony Chan Dung-ngok, head of Tony TN Chan Surveyors International, fears there will be a knee-jerk reaction following the imposition of the new stamp duty, especially at the high end of the sector in the New Territories.
He says mainlanders make up a significant portion of buyers who favour garden houses and luxury apartments of more than 5,000 sq ft. The stamp duty will seriously harm the top-end market, he warns.
"When luxury property prices soften across the board, wealthy mainland buyers may first look for bargains in traditional prime districts on Hong Kong Island. As a result, [there could be] a price correction in the New Territories' luxury housing market," says Chan, who is also a member of the government's advisory committee on the North East New Territories New Development Areas (NENTNDA).