Home prices in Kowloon rise after Urban Renewal Authority’s record compensation offer for old residential buildings

Name: Hong Kong train fans rush for first rides on long-delayed section of Sha Tin to Central link
Uploaded: 2021-08-11T02:30:16.000Z
Duration: 1 min 3 s
Description: Hong Kong train fans rush for first rides on long-delayed section of Sha Tin to Central link

Lived-in home prices in Ma Tau Wai, Kowloon, have risen by about 3 per cent in the past month; some agents expect a further 5 per cent boost by year-end.

The URA last week offered 154 flat owners of a Civil Servants’ Co-operative Building Society HK$19,848 (US$2,550) per square foot

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The Urban Renewal Authority plans to acquire blocks in Kowloon built under the Civil Servants’ Cooperative Building Society Scheme. Photo: Dickson Lee

Lam Ka-sing

Published: 10:30am, 11 Aug 2021Updated: 2:31pm, 11 Aug 2021

The Urban Renewal Authority’s (URA) record-high acquisition price for units in ageing residential buildings in Ma Tau Wai, Kowloon, has led to a slight increase in home prices in the area. Market observers, however, said that any rise would be limited as the boost will be tempered after the gains in June following the opening of a new MTR line.

The URA last week offered 154 flat owners of a Civil Servants’ Cooperative Building Society Scheme (CBS) development project in Shing Tak Street, Ma Tau Wai, HK$19,848 (US$2,550) per square foot of saleable area, the highest such offer in Kowloon, according to CHFT Advisory and Appraisal.

Lived-in home prices have risen by about 3 per cent in the past month as news of URA’s impending offer started doing the rounds, putting it on a par with newer developments, market observers said. They have risen about 5 per cent since the Tuen Ma line opened in June.

“It’s almost HK$20,000, of course [homeowners] will be aggressive,” said Dennis Yip, senior branch manager at Centaline Property Agency. “Coupled with the opening of the Sha Tin to Central link, raising asking prices and withholding listings is inevitable.”

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Hong Kong train fans rush for first rides on long-delayed section of Sha Tin to Central link

Marco Wu, district director at Hong Kong Property Services (Agency), said prices in the area could rise a further 5 per cent until the end of the year aided by the opening of the Tuen Ma line, acquisitions and economic recovery.

CBS buildings were built between 1952 and the mid-1980s on land granted by the government – usually at a third of market value – to civil servants who formed cooperative societies. Such buildings can also be found in Hung Hom, To Kwa Wan, Kowloon City and Kowloon Tong among other areas. The flats in these societies tend to be large, ranging from around 800 sq ft to 1,600 sq ft.

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