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Riding high
Such is the demand for housing, the residential property market in Shatin is in fine fettle, says Jane Drew
A world-class racecourse, bustling metropolis and fantastic recreational and cultural facilities make Shatin a great place to live and ensure that demand for property is always high. While the town’s aspect is still green and a river runs through it, massive housing projects occupy the surrounding hills where just a few years ago water buffalo ploughed paddy fields.
Shatin has a reputation as an affluent middle class area and though this is justified, it also numbers two government housing estates: Lek Yuen (the original name of the district) and Wo Che (famous for its food stalls selling tofu, barbecued pigeon and chicken congee).
Key luxury developments, including Belair Gardens, City One, Ravana Garden and Sunshine Garden continue to lure investors. And a number of new developments are expected to come on stream in the next 12 months, due to strong demand.
Brisk sales in May of two new projects (Celestial Heights in Ho Man Tin and The Palazzo in Fo Tan) boosted the primary market, and suggested that the secondary market still has a way to go. Developers Sino Land and MTR Corp quickly sold more than 800 units at The Palazzo for around HK$9,000 per square foot, while at Celestial Heights, Cheung Kong (Holdings) and Nan Fung Development pre-sold more than 210 units within two days of the May 22 launch, for HK$13,800 per square foot on average.
Looking at the local residential market overall, Midland Realty chief analyst Buggle Lau, who expects transaction volume in the secondary market to drop to 7,000 per month from 9,000 previously, warns that, “Expectations over rising interest rates and the poor performance of the equity market has impacted buyer’s psychology: as a result homeowners are lowering their asking price”. But Lau stresses that this “works out as only a slight drop in terms of transacted price”.
Certainly prime properties in the area are commanding impressive price tags. At Golden Time you can pick up a three-bed, 2,400-square-foot villa for HK$12.5 million, while at Pristine Villa HK$808 million will buy you a 1,278-square-foot standalone home.
A more affordable proposition might be a 1,400-square-foot two-bed apartment with a view of the racecourse which is currently on the market for HK$3.9 million.
Shatin’s rental market is also looking strong. “Rents continue to rise across Hong Kong”, says Lau, “although prices softened a little in June.” The good news for potential tenants is that according to Lau, “some homeowners are now choosing to rent out their properties instead of selling: with the increased supply, rental prices may soften a little”.
At the top-end you can rent a 5,480-square-foot house at Mei Woo Circuit with five en-suite bedrooms, a private pool and garden from HK$150,000. At Greenfields, a 2,850-square-foot four-bed villa is renting for HK$62,000, and at newly launched The Great Hill, HK$105,000 per month will get you a 1,830-square-foot three-bed apartment.
Shatin property remains a sure bet for investors primarily because of proximity to the 70-hectare Shatin Racecourse. Residents are also drawn to the area because of the numerous recreational and sport facilities including swimming pools, football pitches, indoor recreation centres and various track and field facilities. Ma On Shan Park occupies 5.5 hectares of land, and the 8-hectare Shatin Park boasts impressive gardens, a large open plaza and a bandstand. At the centre of the racecourse, Penfold Garden is open to the public on non-racing days.
Shatin was formerly a market town and it has developed into a modern-day shopping mecca. Residents and day-trippers can shop ‘til they drop in any number of malls: Sun Hung Kai Properties’ 239,198-square-yard New Town Plaza (incorporating Grand Central Plaza) is one of the largest shopping centres in Hong Kong. Culture vultures, meanwhile, pay to be in the vicinity of performing arts’ hub, Shatin Town Hall.
Another real draw for residents is that there are 46 primary and 44 secondary schools in the area. Shatin College is one of the leading IBO World Schools in Asia with a student population of 1,200, comprising over 30 different nationalities. Local tertiary institutions include the Chinese University of Hong Kong, Heng Seng School of Commerce and Hong Kong Sports Institute.
Importantly too, Shatin’s road and rail network is well developed, providing a fast and efficient commute. While the MTR (East Rail Line) carries over 730,000 passengers daily, road connection to Kowloon mainly relies on the Lion Rock Tunnel, Tate’s Cairn Tunnel, Shing Mun Tunnel and Tai Po Road, and the Western Harbour Crossing provides easy access to Central.
As of March, thanks to the HK$55.3 billion Highway 8, it takes just 7 minutes to drive to Kowloon Station, 10 minutes to Kowloon Tong, 12 minutes to Tsim Sha Tsui, 15 minutes to Central and 35 minutes to the airport. No surprise then that investor interest in Shatin residential property is on the up.
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