Has Hong Kong, the most expensive property market globally, found a solution in co-living? One firm hopes so
- Eighty per cent of 56-unit Oootopia Kai Tak has been leased, Arch Capital says
- Two more properties to come up in Tai Kok Tsui and near University of Hong Kong
The co-living phenomenon is catching on fast in Hong Kong, the world’s most expensive property market, generating higher rents and attracting greater investment in the process.
There are 1,600 beds available in the city currently, according to JLL, higher than a forecast of 1,200 beds between 2015 and 2020, with rents ranging from HK$2,700 (US$344) to HK$27,700.
And supply is set to grow, with Hong Kong-based real estate fund Arch Capital Management Company the latest firm to hitch its wagon to this trend.
Arch Capital plans to offer about 150 units in three projects across Hong Kong. At Oootopia Kai Tak, its first such project in To Kwa Wan, it is charging between HK$9,400 (US$1,198) and HK$15,200 for units ranging from a studio measuring 110 sq ft to a two-bedroom apartments measuring 208 sq ft, with one of the rooms only big enough to accommodate a single bed.
These rates translate to HK$73 to HK$85 per square foot, about 93 per cent to 108 per cent higher than rents of traditional apartments in the area.
“Rents are much higher than in traditional flats. However, they come fully furnished … with amenities that standard leases do not necessarily offer,” said Letizia Garcia Casalino, head of residential services, Colliers International Hong Kong.