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Well connected
With an advantageous location right next to Central, Admiralty has always proved a popular choice with prospective homeowners – and talking to Carol Lai, vice president of Asia Pacific Properties, Lucy Davis discovers there are still some bargains to be had.
“A 2,335-square-foot penthouse in J Residence just sold for over HK$21,000 per square foot, proving that property is still going for big money in this district.”
The eastern extension of the Central Business District, Admiralty is undoubtedly one of Hong Kong’s most sleek and sophisticated hubs. It is home to some of the city’s most luxurious hotels including the Island Shangri-La, the Conrad and the JW Marriott, as well as upscale shopping mall Pacific Place.
So far as residential properties go, the area is similarly exclusive, with swish new developments such as J Residence, the Zenith and slightly older properties Star Crest and Starlight Garden leading the way. Admiralty has in fact spread its boundaries and is gentrifying the eastern edge of Wanchai: Star Street, in particular, is now a highly sought-after address, playing host to several cool cafes, design boutiques, bars and art galleries.
The area wasn’t always such a glamorous one. Formerly the site of a naval dock and several barracks (hence its name), it was not until the 1970s, when the military finally returned the land to the government, that the skyscrapers moved in. By the 1980s, Admiralty had established itself as an important commercial hub, and by 1988 Pacific Place had opened its doors to the public. Two decades on, the mall is currently undergoing a HK$1.5 billion design revamp overseen by celebrated UK architect Thomas Heatherwick. The improvement project will unveil several new dining venues later this year, including acclaimed Japanese eatery Roka and Shiro.
The Atrium serviced apartments, meanwhile, will be converted into a 117-room hotel, which is scheduled to open its doors in the third quarter of next year.
The residential market has been booming over the past three years. “Properties on Star Street have increased in value by 35 percent to over 100 percent,” says Carol Lai, vice president of Asia Pacific Properties. “Star Crest has seen a rise of 35 percent to 60 percent depending on the facing and level of the apartment, and No. 1 Star Street has seen a rise of 35 percent to 40 percent overall.”
Interestingly, well-established properties have out performed younger complexes in the area by a large margin. Lai notes that, “At 18 year-old Manrich Court, a high-floor, 542-square-foot apartment was worth HK$2 million in November 2006, and this June a similar unit sold for close to HK$4.3 million ― a 115 percent appreciation. Sale are slow at the moment, so clearly opportunity for investment is great.
Rental wise appreciation in the area has, in the past three years, averaged out at about 40 percent. “There are some cases where the price has more than doubled, and it usually involved turning a run-down apartment into a serviced apartment-like premises with very high quality finishings,” says Lai.
So, what is the current mood of the property market around Admiralty? Says Lai, “Transactions at popular complexes such as Star Crest have actually dropped to zero since July, and those at neighbouring properties have likewise been affected. Nevertheless many owners remain positive, and we have not yet seen a drop in asking prices.”
Lai adds that the rental market has become more active in recent weeks and there is a greater supply of properties coming online. “It appears that investors, who had previously planned to sell and take the profits, have now changed their mind and listed at attractive prices to the welcome of would-be purchasers, who have taken a wait-and-see attitude.”
If the level of transactions does not improve in the long-term, Lai admits that prices may adjust downward but only by between 5 percent and 7 percent. Tenant-popular properties in the area such as Star Crest, No.1 Star Street, The Zenith and J Residence, however, are not likely to be affected by such a downturn.
Starcrest, where most units come in at 1,000 square foot, is currently selling for between HK$13,000 and HK$17,000 per square foot, while at No. 1 Star Street, which offers one- and two-bedroom apartments ranging from 410 square foot to 711 square foot, a 665-square-foot property on a high floor with open city views sold for nearly HK$11,000 per square foot this July.
Within easy walking distance of Pacific Place, The Zenith and J Residence offer two-bedroom apartments of between 500 square foot and 800 square foot, and an impressive range of facilities. Built in 2007, the latter features Hong Kong’s first residential sky clubhouse with rooftop swimming pool and cigar room. “They have seen over 150 transactions since the beginning of 2008 with those most recently showed priced between HK$8,000 per square foot and HK$10,000 per square foot and HK$9,000 per square foot and HK$14,000 per square foot respectively,” says Lai.
A 2,335-square-foot penthouse in J Residence just sold for over HK$21,000 per square foot, proving that property is still going for big money in this district.
Those looking for a bargain in the area, however, need not despair. “Older blocks such as Manrich Court and Starlight Garden on Star Street have 450 square foot to 550 square foot apartments with asking prices of approximately HK$4 million,” Lai confirms.
If you are looking to rent your property out, then a 500-square-foot unit will command at least HK$15,000 per month in Manrich watchCourt or Starlight Garden, hitting up to HK$27,000 per month at J Residence or The Zenith. An 800-square-foot property at either The Zenith or Starcrest can generate a monthly rental income of up to HK$40,000, while Starcrest’s spacious 1,000-square-foot properties start at HK$45,000.
With a host of swanky bars, restaurants and designer shops on its doorstep, Admiralty is also minutes from Tsim Sha Tsui or Central by MTR, and whether you’re looking for a hip residential complex with state-of-the-art facilities, or an older property with more space, you can find it here.
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