‘MTR effect’ rubs off on property sales in Whampoa and Ho Man Tin
Railway line extension lifts property demand in districts, triggers interest in upcoming MTR tenders
Property sales in Whampoa and Ho Man Tin have surged after the MTR Line was extended to the regions last Sunday.
The extension will also trigger heated interest in MTR Corp’s upcoming residential land sale tenders, according to global property consultancy JLL.
In its latest Hong Kong Residential Sales Market report, JLL said residential capital values in Whampoa and Ho Man Tin have increased 95 per cent and 80 per cent respectively, since the extension was gazetted in November 2009, outperforming the 61 per cent increase recorded for the whole of Hong during the same period.
The 2.6 kilometre Kwun Tong MTR Line extension which was originally scheduled to open in August last year, opened on Sunday connecting Whampoa to the Kwun Tong Line at Yau Ma Tei via the intermediate station of Ho Man Tin.
Property agents said rentals in Whampoa have risen by 10 per cent in the past month.
JLL described it as the “MTR effect” and said that the realisation of new railway infrastructure has traditionally been an impetus for residential price growth in the beneficiary districts and would also boost demand for commercial amenities.
JLL expects developers, investors and end-users to capitalise on the resultant opportunities from the “MTR effect”.
Coupled with improved sentiment in the overall market, it expects bids placed for the upcoming MTR Corp tenders in the fourth quarter of 2016 – the first packages of the two property development projects at Ho Man Tin Station (about 1,000 flats) and Wong Chuk Hang Station (about 800 flats) – to surprise the market..
“In Hong Kong, residential projects with railway connections have always been more popular with buyers. Once the railway extension starts operation, properties in Whampoa and Ho Man Tin should be able to draw more interest from buyers, leading to an increase in transaction volumes and a possible boost in property prices in the two districts,” said Henry Mok, regional director of capital markets at JLL.
The consultancy expects tenders for the Wong Chuk Hang Station and Ho Man Tin Station residential development projects to attract significant interest from local and mainland developers looking to capitalise on the potential gains.