Flats with a water view command a hefty premium in Hong Kong
The sweeping views to the horizon, the stunning skyline and the sea breeze. The ocean has always exerted an irresistable pull. But living by the water comes at a price, especially in a high density city like Hong Kong.
"One or two decades ago, Hong Kong buyers loved to pay a high premium for sea view units. However, as there is no guarantee that your view can be retained, and on the other hand the landscape of property developments have been improved over the past few years, buyers now also enjoy garden views," said Midland Realty's residential chief executive Sammy Po Siu-ming.
He said the average price premium of an apartment that includes a sea view was around 20 to 25 per cent.
"Mainland buyers are still desperate for sea view flats, especially those with spectacular views of Victoria Harbour and Kowloon or the Hong Kong skyline. They are willing to pay a high premium," said Po.
The Harbourside at Kowloon Station in West Kowloon is typical. Developed by Hang Lung Properties, the development, with its location adjacent to the sea, has three connected 75-storey residential towers. It has 1,122 residential units, comprising two-bedroom, three-bedroom, four-bedroom duplexes and special units. Units A, B and C enjoy nice views of Victoria Harbour and the Hong Kong skyline. Units D, E and F have garden views.
According to the price list issued by Hang Lung in May, asking prices of a 1,828 sq ft unit at Block A, on the 79th floor in Tower One, is HK$78,042 per sq ft. That's about 130 per cent higher than the asking price of HK$34,101 sq ft for a Tower One Block F unit on the same floor - same layout, but without a sea view. The flat A unit was sold for HK$115 million or HK$62,900 per sq ft in June. "The property price reflects the market supply and demand. We set the price that the market can bear," said Philip Chen, chief executive of Hang Lung Properties. Chen said Unit A on the 79th floor Tower 1 commanded a stunning view over Central and Wan Chai.
