Is it time to get used to HK$20,000 per-square-foot prices?

Hong Kong Malibu

Property prices are on a general upward trend, with some recent second-hand transactions shocking the market with sky high prices. A 242-square-foot unit with a balcony in Ngau Tau Kok's Amoy Gardens has recently been sold for HK$4.98 million, breaking the housing estate's record high. During the SARS outbreak in 2003, prices in Amoy Gardens fell to just over HK$1,000 per square foot, but now they can easily exceed HK$20,000 - a true 180 degree turn-around if there ever was one.

These high prices are not limited to urban city areas. In fact, a 191-square-foot unit with a 71-square-foot garden in Yuen Long's Domus has in fact sold for HK$37.28 million, translating to HK$19,518 per square foot - a new record high for Yuen Long. Domus is situated away from Yuen Long's busy centre, approximately a half hour journey away on public transport.

There is no lack of large housing estates on Hong Kong Island whose prices have already exceeded HK$20,000 per square foot. For instance, a two-bedroom unit in Taikoo Shing measuring 592 square foot was sold for HK$12.8 million, making each square foot worth HK$21,622.

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While such insanely high prices are still the exception as opposed to the rule for now, there is no doubt that this will stimulate property owners to hike up their prices too. It matters little whether the property is in the city or the New Territories, their prices seem to be irrevocably advancing towards the HK$20,000 per square foot mark regardless.

Wheelock's MALIBU project in LOHAS Park has recently launched for HK$15,000 per square foot. It is LOHAS Park's priciest development but the 750 units initially launched for sale were all sold out within two days. When compared to second-hand units on sale, MALIBU's prices must indeed have seemed reasonable. 

Are you ready to step into an era where property prices are now HK$20,000 per square foot? 

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