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Kenneth Ko

The growth of Tai Po Kau and Wong Yue Tan into upmarket residential extensions of the Tai Po district, in the northeastern New Territories, is gathering pace.

While the Tai Po town centre is dominated by high-rise buildings, Tai Po Kau and Wong Yue Tan are designated for large-scale, low-density luxury developments.

Hong Lok Yuen, located about two kilometres west of Tai Po town, was launched in the 1980s as the first in the area to embrace the idea of a large-scale development featuring Western-style houses and gardens in a spacious environment.

Hong Lok Yuen is the most significant low-rise residential estate and one of the most actively traded luxury projects in the area.

According to Jones Lang LaSalle, developers plan to put another 6,000 medium-size, large and luxury residential units on the market in the next five years in generally low-density projects.

The property consultant's director and head of research, Tim Bellman, said it had singled out Tai Po for special attention because of the concentration of recently built and upcoming luxury developments.

The company would monitor rents and prices in the area regularly as part of its routine market coverage, he said.

'Tai Po's strategic location, clean environment and emerging technology cluster provide a major opportunity for a qualitatively different form of development as the area consolidates its position as an important luxury residential sub-market,' he said.

In Tai Po Kau, south of Tai Po and just to the north of Sha Tin, Kerry Properties is developing a high-quality project on Tai Po Road, including about 300 units.

Another complex, comprising 89 large units and being built by the Emperor Group, is on schedule for 2003. There also is a seven-house, luxury development by Glory Treasure Properties.

In Wong Yue Tan, north of Tai Po, most residential developments are in the hills behind the industrial estate.

In the next couple of years, Henderson Land plans to build a 547-unit luxury project along Ting Kok Road.

Further down the road, Cheung Kong (Holdings) plans to develop a 1.8 million-square-foot residential project in Fung Yuen, north of Ting Kok Road. Originally, it was to be townhouses, but a revision see it converted to a project involving 10-storey blocks with a total of 1,728 units.

'Tai Po has many of the key attributes to attract wealthy households. Prices of new luxury developments are considerably lower compared to more established locations on Hong Kong Island, Kowloon Tong and Sai Kung,' said Jones Lang LaSalle head of residential markets Joseph Tsang.

According to the new Jones Lang LaSalle index for Tai Po, average transaction prices in the third quarter were HK$5,200 to HK$7,000 per sq ft for Cheung Kong's DeerHill Bay, HK$3,750 for Sun Hung Kai Properties' Chateau Royale and HK$3,000 for Henderson's Casa Marina.

The consultant said demand in the Tai Po leasing market had been weak for some time.

This was due to reduced expatriate numbers and tightened housing budgets.

However, concerns about the area becoming less popular for airline employees with the airport's relocation to Chek Lap Kok had proved unfounded, the property consultant said.

Monthly rental levels for large and luxury development range from HK$12 to HK$17 per sq ft, with selected properties such as DeerHill Bay achieving HK$18 to HK$22 per sq ft.

Jones Lang LaSalle said Tai Po already was a favoured location for industrialists and importers or exporters with the need to travel frequently to manufacturing facilities in Guangdong. The proposed 24-hour opening of the border and new regional rail and road infrastructure would further reinforce this.

The HK$3.3 billion Science Park at nearby Pak Shek Kok was expected to increase employment opportunities and provide opportunities for further large and luxury property development.

'The growth of population in Tai Po will be modest by overall Hong Kong standards. However, the demographic profile will change significantly, leading to a change in the quality of development and facilities,' Mr Bellman said.



Strategic location and clean environment seen as drawcards for quality low-rise projects