High management fees likely for single-block developments, say property specialists
Property specialists note that the government is pushing small developments to boost flat total
The growing trend towards single-block flat developments as a result of the government's aggressive hunt for building land is likely to push up management fees for buyers of both private and subsidised flats.
This warning came from property specialists yesterday after it was disclosed that buyers of Home Ownership Scheme (HOS) flats in a remote Lantau town would pay management fees almost equal to their mortgage payments and more than those for at least one luxury estate.
Buyers at Tin Lee Court in Tai O, a 19-year-old block of 85 flats converted from public rental to HOS, will pay fees ranging from HK$2,043 to HK$2,073 a month for their flats of 478 to 482 sq ft.
Chan Kwok-hung, one of 12,500 people who applied in June to buy flats, attracted by prices of HK$641,100 to HK$897,300, said he had changed his mind.
"It's not cheap at all if we also consider management and commuting costs," said Chan, who had planned to buy a flat for his daughter. "I'm afraid the fee will escalate to HK$3,000 with inflation and ageing of the building."
The fee is close to the monthly payment of HK$2,500 on a 25-year mortgage and, at about HK$4.20 a square foot, is higher than the HK$3 per sq ft paid at luxury Pok Fu Lam estate Bel-Air.