Lifestyle

Seize Opportunity in Causeway Bay


Causeway Bay is a name known to even those who have never been to Hong Kong. Its global reputation is largely due to the sprawling shopping district in the area, and its world-famous sky-high rent. The rent for commercial properties in the area was once highest in the world, and today still ranks No. 2 in the world and No. 1 in the Asia-Pacific region.

While the Causeway Bay retail area’s glitz and glamor as well as rising property price seem to get all the attention, the neighborhood itself is actually blessed with premium location, convenient transport, life facilities and a great school net. Adding the fact that it is one of the hottest commercial and shopping spots in town, Causeway Bay packs tremendous potential in its residential property market. The key is to seize the opportunity.

David Lui, Senior Real Estate Customer Manager at Headline Property Co., says: “I’ve been in the real estate business in Causeway Bay for over a decade, and one thing I’ve notice about this area is that the property price has been consistently robust—it rises when the overall market climbs, yet remains resilient when home prices dip. You can’t say that about estates in other districts, such as Taikoo Shing, Kornhill or Heng Fa Chuen, whose property prices fluctuate greatly. Apart from the time when Lehman Brothers went bankrupt in 2008, which resulted in a 20% decrease in Causeway Bay property value, it has been rising on a steady pace.”

Across all major cities in the world, core district properties have always been a hot commodity for investors simply because there’s an endless demand, and it is the same for Causeway Bay. “Causeway Bay is a main area of Hong Kong. With a huge number of office buildings and shops, it is a preferred district for white-collar workers, whose high income is a driving force in its rental market,” David explains. “On the other hand, the area also attracts strong buyers. The majority of units in Causeway Bay are large units, and larger size means higher price. The new mortgage policy dictates that the highest Loan-to-Value percentage for properties over HKD10 million is 50%. According to our statistics, the average per-square-foot rent in the area ranges between HKD35 to HKD50, depending on the quality of the building and of the unit.”

More on Causeway Bay

>> Shop and Eat till you Drop in Causeway Bay

>> New properties in the neighbourhood: Jones Hive


Selected Properties

The Gloucester
Located on 212 Gloucester Road, The Gloucester is a free-standing building built in 2013. The development has 34 floors and 177 units, of which 17 are special flats. Unit sizes in the building vary from 1 bedroom to 6 bedrooms, measuring at 480-4,200 square feet.  According to Hong Kong Property Services’ statistics, the C1 unit on 5/F, with a saleable area of 352 square feet, was sold this January by tender, at the price of HKD10.3 million.

Paterson Building
Built in 1960, Paterson Building is at 37-47 Paterson Street, and constitutes 4 buildings and a total of 301 units. David says that his agency has recent sold a unit in the estate and leased another. The owner of a 753-square foot unit sold the property at HKD9.48 million, or HKD12,500 per square foot. In the meantime, a 703-suqare foot unit was rent out at HKD25,000 per month, making the per-square foot monthly rent HKD35.

Pearl City Mansion
The estate is at 22-36 Paterson Street, on the corner of Paterson Street and Great George Street. Comprised of 4 buildings, it was built in 1972 and offers 572 units. These units are primarily medium-sized, with saleable area ranging from 400 to 500 square feet. According to David, his agency has recently rented out a 492-square foot unit at HKD21,500 per month, or approximately HKD 43 per square foot per month.


Facts about living in Causeway Bay:

Crowded Neighborhood
Causeway Bay is well-connected with a plenty of shopping destinations, and some of the shops and restaurants in the area open 24 hours, making it a crowded neighborhood. The good thing is that it boasts well-developed facilities and infrastructure for easy-living, and many options for dining and entertainment. The downside is the density of people and constant congestions, particularly during rush hour, holidays and protests/parades.

High Efficiency
David says that the average age of buildings in Causeway Bay is 40-50 years. These units not only are larger in size, but also has an efficiency over 85%. Customers don’t have to worry about the problem of flats having large gross floor area and small saleable area. 

School Net
The district belongs to primary school net 12, which includes SKH St James’ Primary School, St Joseph’s Primary School, Hennessy Road Government Primary and True Light Middle School (Primary Sector); while the secondary school net belongs to Wan Chai District, which includes Wah Yan College, Queen's College, St. Paul's Convent School, Sheng Kung Hui Tang Shiu Kin Secondary School and True Light Middle School.  

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