Buying bonanza
We catch up with property developer Michael Cassidy, a director with MacauLand Developments, to get his perspective on the Hong Kong market and talk about his latest luxury project in Pokfulam, Aqua 33
As the market heats up, buyers and tenants alike are flocking to Pokfulam for the South-side weather and space — without the Repulse Bay prices. Aside from the monetary incentive, accessibility is a major draw. You can drive from Pokfulam to the International Commercial Centre (ICC) in less than 15 minutes during rush hour, while the journey can take 45 minutes from Repulse Bay. This issue we take a look at one of the hottest properties in Pokfulam – Aqua 33 – slated for completion in March 2010.
www.squarefoot.com.hk (SF): Michael, in the three months since we last interviewed you, the Hong Kong market has been one of the top performers globally. As a developer, what’s your perspective on why the market has been so strong, and what’s your view looking ahead to 2010?
Michael Cassidy (MC): I think it’s safe to say that during the financial crisis last year, nobody expected such robust performance from the Hong Kong property market. Every investment bank, property agency, and market pundit predicted a miserable 2009. But as it turns out, the Hong Kong and mainland China economies stayed healthy, especially relative to the rest of the world. Buyers who had sat on the sidelines because of the financial uncertainty have come back into the market, and this pent-up demand has helped prices recover to near pre-crisis levels. It’s also helped that the supply of new housing is very low compared to historical norms. Coupled with low interest rates, this shortage has really fuelled the recovery of housing prices after the depressed levels of late 2008 and the first quarter of this year.
Going forward, we’re confident that the Hong Kong market will remain strong. The rapid price increases seen this year will slow down as the market returns to equilibrium, but given the low supply and low interest rates, the fundamentals are excellent and will support steady growth in capital values through 2010.
SF: How have sales at Aqua 33 been?
MC: We realise that we may have under-priced Aqua 33 based on how quick sales have been! We’re pleased by the strong buyer response and I think that’s a testament to the unique design and high-quality of the development.
We’ve just released our last batch of apartments into the market, and have less than 10 units remaining. We reserved some of our best units for last, with some penthouses featuring internal staircases to private roofs still available.
SF: Have you raised prices because of the strong demand and the upswing in the market?
MC: We have raised prices since our launch, but we’ve been careful to make sure Aqua 33 remains very competitively priced relative to other new projects. After all, a significant part of Pokfulam’s appeal is value-for-money. Buyers get much better value in Pokfulam than they do in, say, Mid-Levels. Our prices are equivalent to the individual units offered for sale in the secondary market in the neighbourhood. For the same per- square-foot price as a walk-up flat in an older building nearby, buyers at Aqua 33 get stunning modern architecture and glass lifts, best-of-breed electrical and mechanical systems, fibre-optic internet infrastructure, and extraordinary interior and exterior finishes.
With prices starting at HK$8,300 per square foot, we’re confident that we’re offering the best value anywhere in Hong Kong.
SF: Who are your typical buyers and why do you think they’ve purchased at Aqua 33 versus some of the other developments on the market?
MC: Our buyers have been a mix of expatriates and Hongkongers. They’re young couples and young families, very well travelled and international in perspective, often with several investment properties around the world. Interestingly, for many of these experienced property buyers, Aqua 33 is the first Hong Kong home they’ve purchased to live in themselves. I think what we’re trying to create at Aqua 33 really resonates with people looking for a healthy and eco-friendly lifestyle.
Even though all our flats are for sale only, we receive calls daily from prospective tenants. This really demonstrates the strong rental dynamics in Pokfulam, and particularly for the product on offer at Aqua 33.
SF: One of the unique elements of Aqua 33 that you noted in our last interview is the use of environmentally sustainable construction methodology and materials. One of the challenges facing developers in introducing eco-friendly aspects to their developments is the concern that buyers are not willing to pay extra to save the environment. Have you found this to be true at Aqua 33?
MC: We haven’t priced our project at a premium to other “non-eco friendly” developments, so it’s hard to say whether our buyers would have opted for another project if we had raised our prices to reflect the higher costs of our eco-friendly design. That being said, many of our buyers have specifically cited our choice of materials and attention to reducing energy consumption as significant reasons they chose Aqua 33.
A good example of this is the reverse-cycle, heat-pump air-conditioning systems we’re installing at Aqua 33. Not only are these systems among the most efficient available for cooling, they are also much more efficient than space heaters during winter months. All of our Siemens appliances are rated Class A for efficiency, and we’ve installed top-of-the-line water filtration systems to eliminate the carbon footprint and waste created by the use of bottled water. All of these elements – and more – are good for the environment but also good for our buyers’ wallets after they move in.
| FAST FACTS |
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| Development: |
Aqua 33 |
| Location: |
Pokfulam |
| Developer: |
MacauLand Developments |
| Website: |
www.aqua-33.com |
| Site area: |
25,211 square feet |
| Gross floor area: |
73,765 square feet |
| No. of units: |
42 |
| No. of parking spaces: |
42 |
| Completion date: |
March 2010 |
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