Suburban residents reap the benefits

Prospective tenants are enjoying a greater choice of serviced apartments because of a growing supply of accommodation in decentralised districts.

These units rent for relatively low rates compared with serviced apartments in traditional locations such as the Mid-Levels and Admiralty.

According to property consultants Chesterton Petty, monthly rents for luxury apartments range between $80,000 and $120,000. Rents for second-tier units - mainly in decentralised areas - range from $20,000 to $30,000 a month and some are even below $10,000.

Joseph Ho of the Gold Coast Hotel in Tuen Mun said it was a natural trend for more developers to build hotels in decentralised areas because of the Government's development strategy for the city as well as the improved infrastructure.

Some of the new hotels include serviced suites.

Cheung Kong (Holdings) and its associate, Hutchison Whampoa, are launching hotels in decentralised areas. They include the 566-room hotel Harbour Plaza North Point. The hotel, which is expected to be completed early next year, is targeted at expatriates working in Taikoo Shing and Quarry Bay.

Through its hotel management unit, Harbour Plaza Hotel Management (International), the Cheung Kong group has just opened the 1,102-room Harbour Plaza Resort City in Tin Shui Wai.

At least 400 rooms designated for serviced suites have been leased for long-stayers. The group also has another hotel under construction in Ma On Shan.

Analysts said the growing supply in decentralised areas would put pressure on the rentals of these serviced units.

Meanwhile, Henderson Land Group recently launched serviced units at its Newton Inn in North Point at a monthly rent of $4,888.

The offer generated a strong response with 218 serviced units leased in a short period of time.

Mr Ho said competition was always keen in the sector. However, he was satisfied with the occupancy of the 450-room Gold Coast Hotel.

Although declining to reveal the hotel's average occupancy he said it was usually fully occupied in the peak season in July and August.

The hotel, which charges long-stay customers a monthly rental of $9,000, is targeted at expatriates and other staff working at Chek Lap Kok airport.

Mr Ho said some locals also required a short-term stay in serviced units as they had just sold their apartments and were waiting to move into new flats which might be under construction or being renovated.