Property policies

One Kai Tak apartment owners seek Lands Department nod for resale and lease

PUBLISHED : Tuesday, 09 January, 2018, 9:04am
UPDATED : Tuesday, 09 January, 2018, 9:03am

More than 400 owners of One Kai Tak, the development at the site of Hong Kong’s former airport, have filed applications with the government seeking approvals for leasing or reselling, just two months after receiving keys to their new homes, according to Lands Department.

Of these, 236 applicants sought permission for leasing, while 183 applications were for reselling.

The applications account for about 34 per cent of the total 1,169 units at One Kai Tak, which was developed by China Overseas Land & Investment.

Former Hong Kong chief executive Leung Chun-ying launched the “Hong Kong Property for Hong Kong People” programme in early 2012 to help locals buy property amid rising real estate prices.

Under the scheme, units at One Kai Tak phase one were exclusively for buyers holding Hong Kong permanent identity cards.

The apartments cannot be resold to non-Hong Kong permanent residents for a period of 30 years or until June 28, 2043.

HK$5 million Kai Tak flat deals a blow to Hong Kong government’s affordable housing plan

Also each rental lease term is limited to five years, but open to all everyone, including non-residents, and flat owners are required to seek consent from the Lands Department before selling, renting or securing mortgage for the units.

So far, the Lands Department has approved 19 applications for leasing and 16 for reselling.

“It is not surprising as 40 per cent of units at One Kai Tak were bought by investors when it was launched for pre-sale in 2016,” said Sammy Po, chief executive of Midland Realty.

According to agents, a 525 square foot unit has been leased for HK$22,000 (US$2,810) per month, or HK$42 per sq ft, making it the first leasing agreement at One Kai Tak.

In 2016, China Overseas released One Kai Tak for between HK$15,080 and HK$18,418 per sq ft before a 15.5 per cent discount. That means the smallest unit, measuring 386 sq ft then cost about HK$5 million, or HK$12,742 per sq ft after discount.