Hong Kong’s Peng Chau seen as cheaper alternative to Discovery Bay

Located eight kilometres west of Hong Kong Island, Peng Chau island could potentially serve as an alterative to nearby Discovery Bay’s expensive houses, offering sea view and a quiet environment at much lower cost, property agents say.

Only a 30-minute ferry ride to Central, the one square kilometre island could potentially attract the overflow of leasing demand from Discovery Bay, said Ingrid Cheh, associate director of research at JLL.

“The median monthly domestic household rent in Discovery Bay is as much as HK$21,000 so Peng Chau’s new projects could potentially present more affordable rental alternatives,” she said.

Cheh said the leasing market on the island is primarily supply-driven. “The provision of high quality supply...could draw more leasing and investment interest in Peng Chau,” she said.

New developments include 54 homes at Sino Land’s Paloma Bay and 10 at Paloma Cove, as well as other projects in the pipeline such as 40 units at Well Power Electronics’ Peng Lei Road project and four stand-alone homes by Ocean Gain Construction and Smart Champion and an estimated five units from Agile Property and Sino Kingdom.

Besides Sino Land’s projects for lease, and those in the pipeline, there has not been any new private residential supply in Peng Chau for at least 15 years.