Buyers choose subsidised properties over private housing

tung yuk court

In 2018, the prices of private housing are still breaking record highs, and the same can be said for HOS estate and public estates. In light of this, many buyers find themselves switching targets from private housing to subsidised properties.

According to the Housing Authority, a HOS 650-square-foot unit in Tung Yuk Court, Shau Kei Wan, was sold at a discounted ‘green form’ price of HK$8M which averages HK$12,300 per square foot - a new high for HOS estates across the city.

Another 556-square-foot unit in Sha Tin’s public estate Hin King Estate was sold for HK$4.05M, averaging HK$7,155 per square foot, marking a breakthrough past the previous record of HK$4M.

Under the Hong Kong Government’s current measures, we are suffering a severe shortage of second-hand housing supply. An estate with over 10,000 units would likely only supply less than 100 units for second-hand sale, which is only a mere 1%. As such, buyers are setting their sights on HOS estates and public estates of lower quality, which in turn causes the prices of these subsidised properties to also break their records.

Even with the expected interest rate hikes this year, the sheer scarcity of second-hand unit supplies ensures that property prices will only continue to rise for now.