HONG KONG

Six surplus Hong Kong government quarters spark interest from market

PUBLISHED : Tuesday, 06 January, 2015, 10:35am
UPDATED : Tuesday, 06 January, 2015, 10:35am

A 93-year-old house stands on the Peak which has no grandiose main entrance or fancy interior decoration, but its drawing card is: a competitive monthly rent that potential tenants hardly find in the area.

The 4,958-square-foot house with a 6,031 sq ft private garden and a garage, named Sailing Look, at 6 Lloyd Path, The Peak, is one of eight surplus government quarters released for lease by the Government Property Agent. Six on the The Peak, while the remaining two at the Prince of Wales Hospital staff quarters in Sha Tin.

The asking rent is HK$220,000 per month or HK$44 per square foot, according to property agents, and is about 30 per cent lower than those in the nearby area.

“It is hard to find such a large stand alone house on the Peak available for leasing,” said Alan Wong, a director at Landscope Christie’s International Real Estate, which is one of 44 agents marketing GPA surplus quarters.

The house comes with three bedrooms, a study room, two maids room plus a store room and a spectacular view of Victoria Harbour. It is located a stone’s throw away from Victoria House at 15 Barker Road, now the official residence of Chief Secretary Carrie Lam Cheng Yuet-ngor.

He said nearby houses with an area of 3,000 sq ft has rented out for HK$200,000 a month, or HK$66 per square foot.

Eric Lee, regional associate director at Centaline Property Agency said the asking rent is very competitive.

“Frankly speaking, those looking for houses with Gaggenau luxury kitchen or marble bathtub will be disappointed. All surplus government quarters are just providing basic needs,” he said.

The other five units ranging in size from 2,148 and 2,814 sq ft at Mansfield Road, The Peak, are being offered for lease at a monthly rent of between HK$67,000 and HK$93,900, or HK$30 and HK$33 per square foot, according to GPA.

“But their pricing is very attractive and most units are very spacious,” he said.

Citing an example, Lee said a 1,366 sq ft unit at Residence Bel-Air in Pok Fu Lam is going for HK$68,000 per month.

 

“That amount can rent a surplus quarter with double of that size on the Peak,” said Lee.

All these units will offer a rent- free period of one to two months and available for a leasing term of two years.

GPA said it had leased out 295 surplus quarters to the private sector, generating an income of HK$164.7 million in 2013, according to its latest annual report.

Lee expects luxury rents would remain flat this year but future movement will be determined by the number of mainland big enterprises setting up offices or seeking a listing in Hong Kong.

“Bosses of these big corporates will look for houses with a monthly rent of about HK$500,000 or above,” he said.