New up-coming areas for expats in Hong Kong
- by Jimmy Chow + Colleen Gibson from Landscope Real Estate Services Ltd.
(SF issue 16)
Newcomers to Hong Kong are increasingly moving to developments outside the areas traditionally favoured by expatriates.
Many expatriates choose to live in newly developed residential districts that are outside the traditional expatriate neighbourhood namely The Peak, Mid-Levels, Hong Kong Island's south side, Happy Valley and Discovery Bay on Lantau Island.
There is a growing trend for expatriates to branch out into neighbourhoods traditionally inhabited mainly by local residents. Many have started to move into neighbourhoods such as the brand-new developments spawned by the MTR Tung Chung Line/Airport Express at Kowloon Station, Tung Chung and Olympic Station. Also, new luxury developments in Kennedy Town, Wan Chai and Hung Hom are increasingly favoured by expatriates looking for downtown convenience and amenities.
Great views
For example, The Arch, the Kowloon Peninsula's new architectural landmark, faces Victoria Harbour, enjoying picturesque views of Hong Kong Island. Other developments in Kowloon Station that are attracting expats include The WaterFront, Sorrento and The Harbourside. These buildings offer exceptional quality and amazing city and harbour views. The close proximity to Tsim Sha Tsui and Central (Hong Kong Station) make it a convenient place for expats to locate close to their offices.
Compared with the Mid-Levels, the average rental of Kowloon Station is almost 20 per cent cheaper. Although Kowloon Station lacks the dazzling entertainment that Mid-Levels has to offer, its breathtaking sea views are unparalleled.
Proximity to the airport
With the airport just a short five-minute commute away, Tung Chung has become popular among expatriates and especially airline crew and pilots. New appealing developments in Tung Chung include Caribbean Coast, Seaview Crescent, Coastal Skyline and Tung Chung Crescent.
Recent trends show that Tung Chung has become a popular alternative to Discovery Bay because transportation to the area is seen as more convenient via highway or MTR. Some residents find it less convenient to plan their commutes to Discovery Bay around ferry schedules.
Developments in Tung Chung average a mere HK$9.80 per sq ft for rent. Large square footage, modern facilities and waterfront views also make it a desirable option.
The housing developments in Tung Chung consist of high-rise towers, many with unobstructed oceanfront views. The shopping centre offers restaurants, retail stores, a movie theatre and a pub for entertainment.
Shopping convenience
Several new developments have sprung up in Olympic Station, close to Tai Kok Tsui which used to be dominated by lower-income local housing. This area has seen significant redevelopment since the airport and the Airport Express / Tung Chung Line were built. New housing developments include Island Harbourview, Park Avenue, Central Park, Harbour Green and Hampton Place.
Residents here are well-served by the large-scale shopping complex at Olympian City. In addition to the MTR for Central and the airport, bus and mini-buses connecting Mongkok, Tsim Sha Tsui and other parts of Kowloon and Hong Kong Island abound.
Central location
Residential properties on Hong Kong Island do not necessarily translate into pricey rentals. Kennedy Town, towards the western end of the northern side of the Island, offers quality residences at competitive rentals. Popular developments include Manhattan Heights, Cayman Rise, Talon Tower and, the latest offering, The Merton.
The Merton is very modern and many units offer waterfront views. Its prime attraction to expatriates is its convenient proximity to Central and lower rental rates: HK$19 per sq ft versus the typical range of HK$25 to HK$28 per sq ft in Mid-Levels. The future extension of the MTR line to Kennedy Town promises increased popularity in the years to come.
As another alternative, many expatriates have chosen Wan Chai. The residential buildings are a bit older, but newly remodelled units can be found. Expatriates tend to choose this location because it is centrally located, with a host of restaurants and entertainment venues close by.
Commute to mainland China
Considering the close business ties between Hong Kong and the mainland, residences offering extra convenience for frequent commuters to southern China are in demand.
As a major station of the Kowloon-Canton Railway (KCR), Hung Hom is the terminus for "through-train," or direct cross-border trains, to Chinese cities such as Guangzhou, Dongguan, Foshan, Zhaoqing and even as far as Shanghai and Beijing.
Owing to this distinct convenience, Hung Hom has attracted more expatriate business executives to live in the area. The Metropolis Residence, right in front of Hung Hom KCR station, is a fine option. It offers serviced apartments for lease, and shares clubhouse facilities with the Harbour Plaza Hotel. Other popular developments include Laguna Verde, the Royal Peninsula, Whampao Garden and Whampao Estate. Rental rates here average HK$19.20 per sq ft, so a 1,500-sq-ft apartment rents for about HK$28,800 per month.
Pushing factors
Other than the above "pulling" factors drawing expatriates to newly developed districts, there are several "pushing" factors that drive expatriates to expand their home search options to non-traditional neighbourhoods. Many expatriates arriving in Hong Kong are Westerners who are accustomed to living in larger homes. They tend to have more discerning tastes than locals when it comes to housing, and have had to expand their search options to include newer districts.
The lack of new developments in traditional expatriate areas is a driving force in the expansion into these newer districts. New buildings and developments tend to offer luxurious on-site amenities. Many include indoor or outdoor swimming pools, workout facilities, tennis courts and spas. This level of amenities is less readily available in more traditional areas.
Most importantly, rising rentals and prices and tight vacancy rates in traditional areas are strong factors in the shift. Transportation and infrastructure in these upcoming districts have significantly improved with new extension lines such as the Tung Chung Line and the upcoming extension of the Western MTR Island Line.
According to the latest government statistics, the number of multinational companies (MNCs) that have set up their regional headquarters or offices in Hong Kong has reached record levels. By June this year, there were 1,098 regional headquarters as well as 2,511 regional offices registered, up 13.6 per cent and 12 per cent respectively from last year's registrations.
Nevertheless, these MNCs are concerned about housing costs and supply in Hong Kong, explaining why employers are starting to look for homes with comparable living conditions outside traditional neighbourhoods for their expatriate transferees.
For these reasons, the influx of expatriates into non-traditional districts will continue to grow and catch on in popularity among multinational assignees.
Average rentals in traditional expatriate districts from Jan to Oct 2006*
* Remarks: Statistics computed from transactions recorded by HongKongHomes during the reporting period
