Luxury comes as a breath of NT air

MANY newly arrived expatriates wanting to be within easy reach of Hongkong's main business districts, choose to live in the traditional ''luxury'' residential districts of Hongkong island such as Mid-Levels, the Peak and on the south side.

The lack of new supply of luxury housing, combined with higher demand spurred by Hongkong's economic growth, has created difficult market conditions for tenants.

Vacancies in popular developments are limited and this has led to sharply higher rents, especially on Hongkong island, as landlords have quickly capitalised on market conditions.

Despite these competitive market conditions, many agents and tenants still overlook locations in the New Territories.

While people realise there are attractive and popular districts in the New Territories, such as Sai Kung and Clearwater Bay, the perceived distance of these locations from the centre of town creates a psychological block in the minds of many expatriates, thus preventing them from being properly considered as a place to live.

The truth is, though, that it is easy to reach Sai Kung, Clearwater Bay and Sha Tin from Hongkong island via the Eastern Harbour Crossing, Kwun Tong Bypass, Tate's Cairn Tunnel and Tsueng Kwan O Tunnel.

Developers have acted quickly to capitalise on this new accessibility by constructing luxury housing developments. New supply of large or luxury units due for completion in the New Territories in 1993 and 1994 will be up to 73 per cent of the total in Hongkong.

Most of the remainder will be on Hongkong island.

But what about the cost? Broadly speaking, luxury residential rents in the New Territories are anything from 25 to 40 per cent less than those on Hongkong Island.

Alan Dalgleish is research manager with First Pacific Davies