WAN CHAI IS BETTER known as a red-light, late-night drinking spot than a residential zone. It began as a dockland on the edge of the harbour and evolved into a 19th century haunt for carousing sailors and women of the night. There was a great deal of action over the years but by the time the extension to the Hong Kong Convention and Exhibition Centre was built to mark Hong Kong's 1997 handover, the tone had changed slightly. The bars and restaurants still throb, although many are more upmarket than in the past. There is a plethora of older residential buildings and the apartments are mostly individually owned. But demand is growing for upmarket residential space to cope with an overflow from Central and Admiralty. 'Wan Chai has great potential. A lot of commercial buildings are moving to the area as Central and Admiralty are saturated. There is a need for new residential buildings,' said Justin Fung, senior property consultant at Ricacorp. There are options at both ends of the spectrum, with lower-budget older units or newer, more expensive places at the upper end. Michelle Lee, associate director for marketing and residential leasing at First Pacific Davies, said: 'Wan Chai mainly belongs to people who want to live in the lower-budget range. There is a scarcity of good quality properties'. Two notable upmarket developments in the area include the Convention Plaza, by the Grand Hyatt Hotel and the Convention Centre on Harbour Road, and Star Crest, developed by Swire Properties and set back from the crowds and neon lights at No 9 Star Street. Convention Plaza units range between 500 and 1,050 square feet and some have sea views. Residents can choose to have their units serviced. One factor which sets these flats apart is access to facilities. There is a club house, gym and swimming pool. Rents range between HK$20,000 and HK$55,000 and sale prices average HK$6,200 per sq ft. Ms Lee said Star Crest was a classic, quality building, made more attractive by its easy access to Pacific Place in Admiralty and Central. Units are on the large side for this area and range between 930 and 1,100 sq ft, with rents averaging HK$30,000 to HK$40,000. The median sale price is about HK$7,000 per sq ft. Flats are not serviced. The opening of the Cine Citta restaurant in Star Street late last year has added to the burgeoning trendiness of the area. There are a few other coffee shops, eateries and design firms nearby, raising the potential. Few residents will begrudge the 10-minute walk to the Mass Transit Railway in exchange for a little distance from the riotous activity closer to Lockhart and Hennessy roads. For those on lower budgets, there are residential options in older buildings around Star Street and Monmouth Path. Another upmarket addition to the area should come on to the market in June. The Century Apartments, located opposite the Century Hotel on Jaffe Road, are being renovated by Allied Property into modern units targeting professionals. Rentals should be in the HK$15,000 to HK$44,000 range and are between 450 and 900 sq ft. All apartments will be serviced and available for short-term lease. Residents will have access to the Century Hotel gym. 'When Century Apartments comes up, it should be very well received because of the scarcity of this kind of quality building. It is gearing to the fact there is demand to live in Wan Chai but there is a shortage of good buildings in the HK$18,000 to HK$44,000 budget range,' Ms Lee said. Serviced units in older-middle or lower-middle class buildings can be found at 151 Lockhart Road, 163 Hennessy Road and Takan Lodge. Rentals range between HK$9,000 and HK$28,000 and there are no added facilities. Those without the luxury of a corporate lease looking lower down the scale can approach one of the many small agencies. There are options on their books in the HK$7,000 to HK$9,000 rental range, with flats typically small at 500-600 sq ft. Mr Fung said choice was wide among older buildings and prices were still low compared with Central. Average rental is about HK$10 per sq ft with average sale price less than HK$3,000 per sq ft. There are several older residential buildings around O'Brien Road and Thompson Road, many flanked by commercial space. According to the Centaline Web site, a two-bedroom, 790 sq ft unit at 2 O'Brien Road is on the market for HK$2.5 million. The building was completed in 1988. A 392 sq ft unit on the third floor of the 21-year-old Hay Wah Building sold recently for HK$760,000, or HK$1,926 per sq ft. The same-size unit several floors higher went for HK$1.2 million, or HK$3,061 per sq ft. Ms Lee said: 'Wan Chai is a very special area. Some people like to live here because their offices are here, it is close to the convention plaza, hotels and transportation links. People like to be close to the hustle and bustle of the city'. Her typical clients are single professionals or young couples without children, employed by information technology, financial and telecommunications firms. Many are on a contract basis or in Hong Hong for short periods. Upmarket buildings appealing to this sector have double-glazed windows and effective insulation which blocks out noise from teeming streets and late-night spots. Mr Fung said many well-established Hong Kong families owned units in the older buildings in the area. Older residents are accustomed to the high-density nature of the area and are unwilling to relocate to areas further afield, another factor adding to the demand for newer units for those seeking to upgrade. Mr Fung said the market was good for studio apartments, with many buying as a long-term investment. Prices have fallen in line with other areas in Hong Kong. Flat D on the 17th floor of 12-year-old Dandenong Mansion on Jaffe Road sold in the middle of last year for HK$1.36 million. According to Centaline, the owner of the 390 sq ft unit made a loss of 18 per cent, after buying the flat for HK$1.6 million about four years ago. Graphic: pro22gwz
