Magnet for investors
Government measures are unlikely to dent one area's enduring popularity.
Despite the government's all-out effort to bring down prices in an overheated property market, experts foresee prices on Hong Kong Island to remain strong.
With its proximity to the central business district, Hong Kong Island has always been the favourite location to call home for the middle class, even in the face of policy uncertainties.
"The government's cooling measures mean residential price movements will be uncertain for a while," says Thomas Lam Ho-man, director and head of research for Greater China with Knight Frank. "This will be particularly apparent in new developments and prime projects where a significant number of buyers are usually companies or mainland-based investors."
Nevertheless, "due to its relatively prime location, Hong Kong Island is expected to remain more resilient compared with the rest of Hong Kong", he adds.
In traditionally coveted districts, such as Mid-Levels and The Peak, prices may plateau for a while, but look unlikely to slide. Elsewhere, regeneration projects in areas, such as Wan Chai, North Point and Kennedy Town, will see a limited number of upscale properties coming on the market.
The continuing extension of the MTR, with stops on a new West Island Line and Aberdeen, will inevitably spur interest in areas seen as becoming more accessible and better served.
