Hong Kong to see surge in tiny flats as demand remains strong
Demand for ever-smaller homes remains strong due to cheaper prices, with developers expected to build increasing numbers of shoe-box flats
Developers are expected to produce more tiny flats in their future projects given the frenetic buying spree for shoe-box homes by young homebuyers and investors, industry observers said.
Demand for cheaper small flats would continue to rise, they said, since Hong Kong home prices have remained buoyant despite the government's introduction of new stamp duties.
"Building more small flats will become a trend, as they are sought after by younger home seekers and long-term investors," said Patrick Chow Moon-kit, head of research at Ricacorp Properties.
A Midland Realty survey showed that land that had been sold in the past two years and designated for building small flats would supply 12,400 units over the next few years.
Upcoming new home sales include those at Sun Hung Kai Properties' 968-unit The Wings Phase 3 in Tseung Kwan O, which will offer about 200 small units of 334 sq ft to 360 sq ft. The official launch date has not yet been set.
Chow said that the market's attention has turned to smaller flats. He noted they were being sold for record prices in the secondary market and were commanding high rents per square foot.
A case in point was a 225 sq ft unit at a new project, The Avery in Kowloon City, which has been leased at a monthly rent of HK$14,000, or HK$62 per square foot - which is higher than in Mid-Levels.