Coronavirus boosts demand for homes on Hong Kong’s outlying Lantau, Lamma islands
- Lifestyle and cheaper rents are drawing people away from Hong Kong Island
- Property on Lantau Island will maintain its value because of environmental protection and construction laws, broker says
The coronavirus pandemic has made homes on Hong Kong’s outlying islands more attractive to buyers, according to property agents.
“Lifestyles and preferences for accommodation are changing due to the pandemic. Although, there is no direct evidence that the outbreak has prompted people to move to the suburbs, but recent consulting about low-density property in the New Territories and outlying islands has increased significantly,” said Owen Yau, associate director at Savills.
Lantau Island, for instance, is double the size of Hong Kong Island, has an abundance of green areas and is often referred to as “the lungs” of the city. Yau said it will continue to maintain its low population density because the government has imposed environmental protection laws and banned the construction of additional buildings.
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And that is why a 4,250 sq ft home called Haven that Savills put up for sale last week in San Shek Wan in South Lantau Island will keep its value. Haven is located by the sea and has a lawn in front. It is suitable for holidays, as well as spiritual and yoga retreats. At an estimated HK$20,000 (US$2,580) per square foot, the property could cost HK$85 million.
The home is not completely isolated – it is about a 35 to 45-minute drive from Central. Hong Kong Island is also a 30-minute high speed ferry away from Mui Wo Pier. Haven is also about a 15-minute drive from Hong Kong International Airport via Tung Chung Town Centre. It is also not far from Macau and mainland China thanks to the Hong Kong-Zhuhai-Macau Bridge.
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Yau said he had received at least five inquiries about buying or leasing the house over the past week.
According to Savills data, houses measuring 3,725 sq ft to 5,573 sq ft at Botanica Bay in Lantau Island had recorded an average price of HK$24,038 per square foot.
“The benefits of buying property on outlying islands are multifold. Some of the reasons people choose to live on Lantau Island are that it’s in the countryside, there’s a lot of green space, a lot of nature and more privacy, outdoor spaces for families and people to enjoy and entertain, lots of hikes and waterfalls and beautiful beaches within a short distance. It is easier to feel comfortable [here],” said Kelly Merrick, founder of Home Solutions in South Lantau. She also said she had seen an increase in the number of people looking for homes on the island over the past six months.
She said the average price of village houses, even high-end ones, was lower than HK$7,000 per square foot, while the current average price of homes across Hong Kong was HK$13,952 per square foot, as indicated by housing website Squarefoot.com.
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According to housing data tracker ECRP, the number of transactions at low-rise development IL Picco in Discovery Bay, also on Lantau Island, increased from 19 in February to 38 in May.
“People are declaring a change. They want peaceful tranquillity and green spaces, and they want a nice lifestyle. They also want to save money. They can’t afford crazy places. So they’re coming to outlying islands for cheap rent,” said an agent based on Lamma Island, another of Hong Kong’s outlying islands.
The Engel & Volkers website shows housing prices on the island range from HK$2.7 million for a 32.5 square metre property to HK$15.9 million for a 131 square metre property.
