Nano flats sell for HK$3m as property prices predicted to soar 20 per cent in 2018

Small certainly doesn’t come cheap, when it comes to Hong Kong property.

A block full of tiny flats in Yuen Long – a new town far from the centre of the city – are being sold for at least HK$2.99 million (US$383,000) per unit, making it one of the most expensive nano units in the Northwest New Territories.

Riding on the improved sentiment in the housing sector, developers Henderson Land Development and New World Development have announced the new price list of their jointly owned 63 unit-Park Reach in Yuen Long at an average price of more than HK$15,000 per square foot. After a maximum discount of five per cent, selling price is averaged at HK$14,975 per sq ft.

The price is 10.5 per cent higher than the average price of the 50 Hong Kong housing estates tracked by Ricacorp Properties.

Property consultants, however, expect buyers to be attracted by the lump sum and home mortgage arrangements being offered by the developers. The developers are agreeing to lend up to 85 per cent of the flat’s value.

“As home prices have risen at such a rapid pace, there aren’t too many flats being sold below HK$3 million,” said Louis Chan Wing-kit, Centaline’s managing director for residential department.

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According to Ricacorp estimates, home prices have risen 20 straight months from March last year, with an accumulative growth now at 24 .5 per cent.

The developers will launch the first batch of 30 units, including 23 one-bedrooms, and seven studio flats, at an average price before discount set at HK$15,763 per square foot.

The cheapest in terms of full lump sum down, among the units on offer, is a 192 sq ft flat, with an asking price of HK$2.99 million

The 63 units range in size up to 310 sq ft, among the smallest nano flat developments in the district.

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On Monday, two property consultants said the city’s housing market – already ranked as the world’s least-affordable urban centre – can expect to be propelled even higher as the booming stock market, record-low unemployment and high economic growth ensure economic sentiment remains high.

JLL expects home prices still have the potential to rise another 20 per cent next year, with 10 per cent growth being forecast by Cushman and Wakefield in its year-end property market review and outlook for 2018.