More tiny flat developments release sale prices as Hong Kong’s love affair with small space continues
Two projects in the New Territories and northern Kowloon have released pricing details this week, as developers target young first-time buyers priced out of the market for bigger homes
Hong Kong’s love affair with tiny flats shows no sign of cooling, with two more projects releasing pricing details this week before going on the market starting from the weekend.
The two projects, CSI Properties’ COO Residence in Tuen Mun and The Amused in Cheung Sha Wan, which is built by Emperor International and the Urban Renewal Authority, are the latest to cater to growing demand for small units, known locally as “nano flats”, as sky-high prices prevent many potential buyers, especially young people, from owning a bigger property.
Some 30 per cent of new flats approved for construction in Hong Kong in the first five months of this year are less than 200 sq ft in size, according to government figures. The popularity of small units is also enhanced because many of them cost less than HK$4 million, making first-time buyers eligible for 85 to 90 per cent mortgages.
The first batch of COO Residence, in the northern New Territories, consists of 50 flats, mostly studios that start at a saleable area of 217 sq ft and a price of around HK$3 million. First-time buyers will be able to get a mortgage of 80 per cent to 90 per cent. The largest two-room flat is just 372 sq ft. No date has yet been set for them to go on sale.
“The project is rare new supply in Tuen Mun town centre. Transport is convenient as it is near West Rail and Light Rail stations, facilities are ample with major malls and markets nearby,” said Perry Fong, senior sales director at Centaline Property Agency.
“All flats are below HK$6 million, with plenty under HK$4 million. As the down payment is relatively low, the project is expected to be popular among young first-time buyers. Interest from investors looking for rental income is also expected,” Fong said. “Rental income per square foot can amount to HK$50 with a return of 4 per cent.”
The second batch of The Amused, located just north of Kowloon, comprises 68 flats, mostly studio units that start at a saleable area of 264 sq ft and a price of HK$4.4 million. They go on sale this weekend and will be ready for buyers to move in by the end of next year. The largest flat is 410 sq ft. The developer had previously released the price list for the first batch of 68 flats.
Donald Cheung, managing director of Emperor International, said the current batch of The Amused has the same average price of HK$17,100 per square foot as the previous one.
“The project is oversubscribed, and about half of the potential buyers are from Kowloon. We hope to sell all 136 flats of The Amused at the same time,” Cheung said. “The property market for the rest of the year is expected to remain stable.”