Lifestyle

For the first-time buyer – Shau Kei Wan


Photo: marcuschlee.blogspot.hk

It is true that property prices in Hong Kong are among the most unaffordable in the world. It is because the supply on Hong Kong Island and Kowloon Peninsula is so limited that the government has developed new towns all over the New Territories to provide public housing and now private estates.

Given the sharp rise in property prices in the past decade, buyers have shifted to the New Territories to look for more affordable homes. Recently redeveloped districts in the urban area have been offering new small units at low cost. The outlook of these areas, benefiting from the social and traffic infrastructure, such as Shau Kei Wan, is deemed to be promising.

According to the government’s records, in the third quarter of 2016, 87% of property sales were medium to small units below 753 square feet.

Until the end of December, the price of Category A homes, which means flats under 431 square feet, has increased by 13%.

In Shau Kei Wan, there is no shortage of medium and small homes supply. Some standalone apartment buildings in the area offer entry-level homes to buyers. As these buildings are located on Hong Kong Island, they also attract investors.

“Both home buyers and investors are active in Shau Kei Wan as its social facilities are comprehensive. Though the end of last year, the government launched some measures to suppress the price and there was the worry about the increase in interest rates, property prices in Shau Kei Wan have stood firm,” says Kathy Yuen, senior property consultant at Emblazon Property.

“We recently helped to close a deal on a two-bedroom, 295 square-foot apartment on the 14th floor of Block C at Shau Kei Wan Centre. It was sold at $4.68 million, and the cost per square feet was as high as $15,200.

“A new wave of growth in price is caused by the record-breaking price of an Ap Lei Chau site.”

“Take the second-hand market of Shau Kei Wan as an example, as it is a seller’s market, room for negotiation is little. The actual cost per saleable square foot is $13,000, and rental cost per square foot is $40.”

 

More on Shau Kei Wan

>> Shau Kei Wan-A Fusion of Culinary Delights and Culture

>> New properties in the neighbourhood: Island Garden | Lime Gala

 

Selected Property 



Island Garden
Developed by Nan Fung Group and located at 33 Chai Wan Road, Island Garden is composed of four blocks of apartment buildings offering 470 flats. The project, offering mainly sizeable apartments, released the first price list last October involving 148 units. This year it will offer more discount privileges from 20.8% to 26.08% to buyers and will launch 50 new flats. In early March, a purchaser bought the four units (two two-bedroom and two four-bedroom units) on the 30th floor of block two, which amounted to a total saleable area of 4, 334 square feet and two car parks at more than $102 million. The average cost per square foot is $23,640.



Island Residence
Built by Wheelock and Company, Island Residence is a standalone apartment building on 163 Shau Kei Wan Road offering 170 flats with a saleable area between 216 and 1154 square feet. Seventy per cent of the units are studio and one-bedroom design, and there are seven specially designed units. A shopping precinct occupies the ground and first floors of the building. According to Centaline Property, the rental cost is $60 per square feet which is higher than others in the same district.



Lime Gala
The project belongs to Sun Hung Kai Properties. The estate is comprised of two blocks of apartment buildings and offers 650 flats in studio, one-bedroom and two-bedroom designs, and there are also homes with unique features. The surface area of standard units is between 281 and 889 square feet. In early March, buyers bought three units at $25.103 million.



Shau Kei Wan Centre
Located at 407-409 Shau Kei Wan Road, the Shau Kei Wan Centre, comprised of three apartment buildings and offering 528 flats between 364 and 402 square feet, was first occupied in 1982. The saleable area is as high as 80%. The cost per square foot is about $13,000.


Facts about living in Shau Kei Wan

Management fee
New residential properties in the area are offering fewer units in small size to buyers. Thus, the management fee is higher. It is said the management of Lime Gala is about $4.5 per square feet, while it is $4.9 for Island Residence.

School Net
Under the primary school placement scheme, Shau Kei Wan belongs to school net 16 which includes Aldrich Bay Government Primary School, St Mark’s Primary School, and The HKCWC Hioe Tjo Yoeng Primary School. Under the Secondary School placement scheme, it belongs to the Eastern District which includes Belilios Public School, Cheung Chuk Shan College, Shau Kei Wan Government Secondary School and Munsang College (Hong Kong Island).

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