Sun Hung Kai offers 421 flats in Kennedy Town and Central for rent, offering help to ease housing shortage as vacancy tax kicks in
- The newly completed apartments are located in Kennedy Town in the western district of Hong Kong Island and near Central
Sun Hung Kai Properties, Hong Kong’s largest developer, is offering 421 flats for lease with terms as short as one month to cater for the younger population ahead of the impending vacancy tax to stop developers hoarding empty units.
The apartments are located in Kennedy Town in the western district of Hong Kong Island and near Central, and are aimed at younger professionals and expatriates on short-term stays in the city. Townplace Kennedy Town, formerly known as The Kennedy on Belcher’s, was launched last year while Townplace Soho is scheduled for launch in the first quarter of next year.
A total of 421 units will be available for rent at the two projects, ranging from studio flats to four-bedroom apartments with saleable area starting from 286 square feet, going up to 1,092 sq ft (101.4 square metres). The minimum leasing term is one month, and yearly leasing plans are also offered.
The launch comes as Hong Kong average residential rents have declined for three straight months to HK$36.39 per sq ft in October, according to Ricacorp Properties. Home prices are also projected to drop by 5 per cent next year, according to Knight Frank.
Sun Hung Kai is resorting to such a strategy to avoid a vacancy tax that may be implemented as soon as this month, said Sam Chi-yung, strategist at Springwaters Financial Securities, adding that the city’s technical recession may also prompt the developer to adjust its sales and leasing strategy.