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Tseung Kwan O’s rental market


Since the escalation of the US-China trade war and the introduction of new housing policies mid-2018, the growth rate of home prices in Hong Kong has continued to shrink. Residential prices in the private market have been falling for four straight months, while the US-China trade tensions, the slowdown of China’s economy and the Federal Reserve’s rate hikes have given the real estate industry plenty of reasons to worry about the market trajectory in the new year. On the other hand, the government has raised the public housing ratio to 70%; this could lead to a decrease in private housing supply, which would in turn boost private home prices.

Under the current circumstances, many prospective buyers are staying put, with some even turning to rentals. The pre-Chinese New Year period is traditionally a slow season for the rental market; renters will therefore have a better chance at negotiating a lower price with some landlords. In addition, looking for rentals in areas with a variety of property types can further boost the renter’s bargaining power. In this sense, Tseung Kwan O—adjacent to the Kowloon East business district with a number of international schools located nearby—makes for an ideal place to seek rental options.

A third-generation new town, Tseung Kwan O has become a welcoming and well-developed neighbourhood, with numerous housing estates and an abundance of facilities. Hong Kong’s housing market has been dominated by new developments in the past few years, and Tseung Kwan O has established itself as a hub for new luxury properties during this time, adding more diversity and appeal to its home market, which had been previously focused on small- to medium-sized housing. The variety of housing types currently available in the area ranges from subsidised housing and private estate to seaside luxury homes, villas and standalone houses, catering to different clientele. Many buyers and renters in Tseung Kwan O are young families who are moving out of their parents’ homes in Kowloon East or Eastern Hong Kong Island, as well as middle-class households upgrading to bigger homes. They provide the local housing market with a steady stream of business.

As the residential market booms, the commercial real estate, hotel and retail businesses in Tseung Kwan O are also on the rise—take the colossal development complex that sits above the Tseung Kwan O MTR station as an indication. Furthermore, its proximity to the Kowloon East CBD makes Tseung Kwan O hotels and serviced residences an obvious choice for business visitors. In a few years’ time, the opening of the Tseung Kwan O-Lam Tin Tunnel and Cross Bay Link will effectively alleviate the heavy traffic in the area while saving travel time for residents going to various part of Kowloon and Hong Kong Island.

Selected properties

Metro City


This Henderson Land Development project was built in three phases in the centre of Po Lam, and is one of the biggest private estates in the area. It has 21 blocks and 6,768 units of various types, while each phase has its own shopping centre. A high-level B unit in Block 7, Phase 2, with two bedrooms and a saleable area of 363 square feet, was recently rented at the monthly price of HK$15,550 or HK$43 per square foot.

Vega Suites


Developed by Sun Hung Kai Properties, this serviced apartment project sits atop Tseung Kwan O MTR station and is 15 minutes away from Kwun Tong and the Kowloon East business district, with two major shopping centres, PopCorn and PopWalk, located at its basement. It has 176 suites, including studios (372 to 501 square feet), one-bedrooms (743 to 765 square feet), two-bedrooms (1,037 square feet) and three-bedrooms (1,560 square feet). Apart from Sealy mattresses and widescreen LCD TV sets inside the rooms, Vega Suites also has a gym, swimming pool, 24-hour reception and offers housekeeping services. The lease period is between one to 12 months.

The Papillons


Located on 21 Tong Chun Street, this Chinachem development was completed in September 2018, and consists of six apartment buildings and five standalone houses offering a total of 857 units. The standard units range from studios to four-bedroom apartments, and special units with balconies and rooftop terraces are also available. The estate also comes with a four-storey clubhouse and a 140,000-square-foot shopping centre that takes up the ground and basement floors. A low-level D unit in Block 3, with a saleable area of 868 square feet and three bedrooms, was recently leased out a the monthly rate of HK$23,800 or HK$27 per square foot.

MALIBU


A collaboration between Wheelock Properties and the MTR Group, MALIBU is located on 1 Lohas Park Road, above the LOHAS Park MTR station. Its three blocks have a combined 1,600 units, with areas between 346 and 1,344 square feet, ranging from one- to four-bedroom flats. Expected to be completed in 2020, sales began in March last year; the first batch of 750 units sold out in two days, and 1,370 units were sold within the month.


Things to know before moving into Tseung Kwan O

  • Transport infrastructure

Measuring 4.2 kilometres, the Tseung Kwan O-Lam Tin Tunnel is a two-lane dual carriageway linking Tseung Kwan O and Kowloon East, due for completion in 2021. It will shorten the journey between Tseung Kwan O town centre and the Eastern Harbour Tunnel by 10 minutes, to a total of five minutes travel time. Meanwhile, the 1.8-kilometre-long Cross Bay Link connecting Lohas Park and the Tseung Kwan O-Lam Tin Tunnel, a dual two-lane bridge with separate walkways and bike lane, is expected to finish construction in 2022 at the earliest.

  • Air pollution

The South East New Territories Landfill, currently located in Tseung Kwan O, handles considerably more garbage than other landfills in Hong Kong. On days when there’s a southeast wind, the odour from the landfill will be carried to the areas in and surrounding Tseung Kwan O and Tiu Keng Leng. Vehicles carrying construction waste and stones further exacerbate the district’s pollution problem.

  • School net

Tseung Kwan O’s primary school net is No.95, which includes Tseung Kwan O Catholic Primary School, Christian and Missionary Alliance Sun Kei Primary School and Saint Andrew's Catholic Primary School. Its secondary school net belongs to the Sai Kung District, which comprises of T.W.G.Hs Lui Yun Choy Memorial College, Carmel Divine Grace Foundation Secondary School and Tseung Kwan O Government Secondary School. Nearby international schools include Clearwater Bay School, Hong Kong Academy, Shrewsbury International School Hong Kong and the new Tseung Kwan O campus of the French International School.