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SCMP Reporter

KENNEDY TOWN, situated at the western end of Hong Kong Island's tramline, is often the target for new arrivals in Hong Kong for the sole reason that it provides reasonably priced accommodation.

Its location is also an attraction for expats and locals alike, as it lies within a short bus ride of the Central business district and the night life district of Lan Kwai Fong.

Named after Sir Arthur Edward Kennedy, the seventh governor of colonial Hong Kong, Kennedy Town provides a cheaper alternative to Mid-Levels and a hotchpotch of local lifestyles for expats. Even the presence of a slaughter house and the absence of local pubs does not deter them from living in the area.

Apartments in Kennedy Town are said to have good investment potential, partly due to reconstruction projects in the area, such as the reconstruction of five main streets and their old buildings, which has sent the price of property in Kennedy Town upwards.

Another factor boosting property prices is the planned MTR rail extension to Kennedy Town from Sheung Wan.

Increased travel options would be welcome because, unlike residents in Causeway Bay, Central and Mid-Levels, those living in Kennedy Town have to do without major shopping malls and boutique shops. However, the area does have a number of wet markets and grocery shops.

According to property agents, many of the residents in Kennedy Town are home-starters, expatriates and local families looking for larger flats.

'Summer is the peak time for buying flats in Kennedy Town,' said Chan Wing-hong, assistant manager of the Western district branch of Centaline Property Agency.

During the summer school holidays, concerned parents who wanted their children to get priority enrolment to some of the best schools usually snapped up flats in Kennedy Town, said Mr Chan. The district lies within the catchment area for highly regarded schools.

This part of Hong Kong Island offers homebuyers a choice of apartments, from brand new projects to developments more than 20 years old. However, there was a limited supply of the former, meaning apartments for sale in the secondary market were usually quickly sold off, the Centaline manager said.

The newest project on the market in Kennedy Town is Cayman Rise, which has been hogging a few headlines in the newspapers of late.

Cayman Rise's 496 units, which were released for sale on September 1, were all sold on the very first day of their release.

Originally designed as a subsidised housing project for sandwich-class families, the Housing Society turned Cayman Rise, on Ka Wai Man Road, into a private project after paying a HK$292 million land premium in June.

Being the first big development to come on to the market after the most recent interest rate cut, two weeks ago, Cayman Rise was considered a gauge for the property market.

The first batch of apartments was priced at an average of HK$3,392 per square foot, with additional batches offered at HK$3,600 per sq ft.

Property agents said the rush for apartments in Cayman Rise was because of the lower than average prices.

Associate director of Midland Realty, Vincent Chan Kwai-hing, said: 'The prices are considered reasonable and the response was overwhelming also because there is no supply of such small sized apartments in the market at this time.' The cheapest flats in Cayman Rise are around HK$1.9 million and sizes of apartments range from 588 sq ft to 808 sq ft.

Home seekers who missed out on bargains at Cayman Rise will get another chance to enter the primary market with an upcoming joint venture between New World Development and the Urban Renewal Authority.

The Kennedy Town New Praya Redevelopment Project aims to redevelop old properties and provide approximately 1,100 units in three 52-storey blocks.

'The old buildings there have been torn down and the site is undergoing construction, and it will be ready within the next two years,' said Mr Chan.

For developments which are less than 10-years-old, prices in Kennedy Town are, on average, HK$3,500 per sq ft. This is the case for those at Harbour View Garden, a single development that contains only standard-sized units of 532 sq ft.

Apartments which are 10 and 20-years-old are priced at about HK$3,000 per sq ft and HK$2,500 per sq ft,  respectively.

Other well-known smaller to medium-sized estates are Smithfield Court, Smithfield Terrace, Serene Court and Hee Wong Terrace. Flats in these developments are more practical as they have higher utilisation of area rates compared to the newer buildings.

Harbour View Garden, which was built by United Development, has a total of 653 units, with the cheaper apartments going for about HK$1.8 million.

Manhattan Heights, an 18-month-old joint venture development between Cheung Kong (Holdings) and Fook Lee Holdings, has apartments from 610 to 810 sq ft in size, costing about HK$5,000 per sq ft. Prices have risen from HK$4,500 per sq ft a year ago.

'During that time, there was an oversupply of apartments, hence they were sold cheaper. Due to the popularity of Cayman Rise, in the last two months the prices for better apartments at Manhattan Heights [with sea views] have risen,' said Mr Chan.

The Belcher's, a high-end luxury housing project, has also attracted a lot of attention from potential buyers since its launch last June.

It covers 180,000 sq ft and boasts a clubhouse, landscaped gardens and hotel-style management. Built over a stylish 220,000 sq ft shopping arcade, the apartments are priced at HK$5,700 per sq ft for those with a full sea view and HK$5,300 for those with garden views.

Residents in The Belcher's also get to enjoy the magnificent views of Sulphur Channel, Belcher Bay, the Tsing Ma Bridge, the University of Hong Kong, Lung Fu Shan and Pokfulam.

Next Week: Kowloon Station and its environs, Tsim Sha Tsui

Graphic: PRO09gwz



Expats attracted by reasonable rent and convenient location