Kowloon projects to benefit from KCR mainland lines
China's accession to the World Trade Organisation (WTO) will benefit the serviced apartment market, especially for the projects along the Kowloon-Canton Railway (KCR) line, which links Hong Kong to China, according to analysts.
To date, Sun Hung Kai Properties' (SHKP) Royal Plaza in Mongkok and Royal Park in Sha Tin are the only two serviced apartment projects located at KCR stations.
The Royal Plaza serviced suites form part of the 1.6 million-sq ft Grand Century Plaza commercial complex in Mongkok, which has a 720,000 sq ft shopping mall. There are also two office towers of 480,000 sq ft and one hotel.
Located on the 10th to 13th floors and 15th to 19th floors of the Royal Plaza Hotel, the serviced room portion provides 203 suites, including studios and one-bedroom units, each fitted out with furniture and a kitchenette.
The sizes of the studios are 357 sq ft, 389 sq ft and 395 sq ft with room rates ranging from $13,800 to $23,000 per month, or $39 to $58 per sq ft, inclusive of management fees and government rates.
The one-bedroom sizes are 714 sq ft, 754 sq ft, 777 sq ft and 790 sq ft with rents ranging from $29,000 to $35,000 per month, or $41 to $44 per sq ft.
These charges also include hotel tax, daily newspaper, local calls, fax machine and maid services.
Facilities include a business centre, conference room, self-serve laundry, car park and valet services.
Royal Park's serviced facility in Sha Tin is located next to the Sha Tin KCR station. It only provides studios of 330 sq ft with rental starting from $13,500, or HK$41 per sq ft, inclusive of management fees, government rates, hotel tax, daily newspapers, local calls and maid service.
The project is linked to the adjoining commercial complex, the New Town Plaza, and also an SHKP development, which comprises office blocks and a shopping arcade.
SHKP also has a serviced apartment project in the Mid-levels, Royal Tower.
Being developments at KCR stations, the two SHKP serviced apartment projects would have special advantages over other projects, a property agent said.
'But this uncontested position may face a challenge when the Cheung Kong (Holdings) Metropolis in Hunghom is completed in the near future,' he said.
The Metropolis is a joint venture with Hutchison Whampoa and KCRC. The first phase of The Metropolis is already completed with a 250,000 sq ft office tower, a 430,000 sq ft hotel and a 360,000-sq ft shopping mall.
The second phase development, to be ready in April next year, is a 377,000 sq ft serviced apartment project, comprising 552 one-bedroom serviced units and 68 two-bedroom serviced units in two blocks.
'Hunghom is the final station of the KCR, and it is close to Tsim Sha Tsui, the commercial centre of Kowloon,' the agent said.
He added that as Cheung Kong built up commercial properties in the area, the serviced apartment project would become more attractive.
