Living in the heart of commerce means easy access to city life, but don't forget to buy your face mask
CAUSEWAY BAY IS decked out in all its finery at this time of the year. Wrapped in neon lights and pulsing with festive buzz, it is easy to forget that one of the busiest shopping districts on earth, with the fifth-highest retail rentals in the world, is home to an established residential community.
Causeway Bay is the heart of the Hong Kong commercial beast. Residents like the close proximity to work and the easy access to city life. It is possible to combine office and living space, and many smaller operators take this option.
While space constraints mean that most residents do without recreational facilities such as a clubhouse and a swimming pool in their apartment blocks, Victoria Park on the Tin Hau side is a welcome relief from the teeming streets. Residents practise tai chi and take their birds outdoors for a breather in ornate wooden cages, while others use the extensive sporting facilities.
The most sought-after residential blocks in the area are in the few buildings between Patterson, Cleveland and Kingston streets, just behind Victoria Park Road. These apartments, which range from a generous 1,000 to 1,600 square feet, hark back to the glory days of the late 1950s when they were rented out as deluxe pads for the rich. The buildings here are between 35 and 42 years old and are enhanced by generous sea views.
Many developers are waiting in the wings for the rights to redevelop this prime real estate, but at present, an apartment can be purchased for HK$5 million, or rented for less than HK$28,000. Prices for leases and sales of residential apartments are down about 50 per cent from their 1997 highs. The area does not have high rises like other typical SAR neighbourhoods and few buildings are higher than 12 storeys.
There are several smaller buildings in the area, available for rent at about HK$125 per sq ft. Sale prices are between HK$1,500 and HK$2,000 per sq ft for buildings more than 30 years old.
Those who live in Causeway Bay do so for the convenience, and with a constant rush hour of public transport on hand, few choose to drive. Elizabeth House, also strategically placed close to the waterfront, is one of the few residential blocks which offers parking options. Blocks A, B and C were built in 1978 and units range from 623 to 1,096 sq ft. Parking spaces can be rented from the nearby Wilson Parking.
Rentals at Elizabeth House are about HK$20 per sq ft, which translates to a sale price of HK$3,500 per sq ft. Rental on a small unit would be about HK$13,000 per month. Many of these units have private owners.
One notable residential option is Sunning Court in Hoi Ping Road, a stone's throw from Sun Hung Kai Properties' prestigious new development The Leighton Hill.
Sunning Court is owned by Hysan Development, which also owns The Lee Garden. These units are available for lease only, at about HK$20 per sq ft. They have between one and three bedrooms and range between 900 and 1,800 sq ft.
Demand is high for units at Sunning Court, with many expatriates and their companies choosing this option.
According to Sanlia Lam, assistant district sales manager at Centaline Property Agency, 80 per cent of Causeway Bay residents are local Hong Kong people. Fifty per cent of units belong to individual owners, leaving one-third with tenants and a vacancy rate of about 20 per cent.
'Many of the units have belonged to families for years,' Ms Lam said. 'The younger generation want facilities and so they move to areas like the New Territories. Older people who do not go out much are happy to stay here. If there is a bar or a restaurant on the ground floor of their block, it is no inconvenience to them as they seldom go out.'
Getting a mortgage in Causeway Bay is not easy as many buildings are near the 45-year age limit. But those who do own can receive a healthy return on rentals, and sale prices have dropped significantly.
The Leighton Hill development, which straddles Causeway Bay and Happy Valley, is a luxury addition to the residential landscape. All 544 units, which make up eight towers, have been sold and will be available for occupation in July 2002. Adam Cheng and Andy Hui are two high-profile buyers. Caroline Gardens, Jade Terrace and Caroline Heights are in the same zone and are newer than many buildings in the heart of Causeway Bay. Prices are significantly higher in these developments.
According to Ms Lam, prospective Causeway Bay residents should take care, although there are good options available at reasonable rates. 'There are a lot of old buildings in the area. Many of them have no facilities and the maintenance is not good in some cases, so you need to be careful.'
Ricacorp account manager Fiona Li said: 'The market is quiet from now until February. It is a good opportunity to take your time and look carefully.'
One big detractor for potential residents is the air-pollution levels. The Air Pollution Index hits a high on a regular basis, making it detrimental to health. So remember to pick up a face mask after you have signed your lease.
Next week: Sai Ying Pun
Graphic: PROPgwz
