Park Island Property Prices - An update
Park Island prices are close to record highs, (but still very cheap in my opinion).
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| Park Island Property Prices |
As you can see from the graph, prices on Park Island seem to be maintaining their gradual accent. The correction in October-December 2011 was I think due to the panic over Greece defaulting on its debt. As Park Island is very much end-user driven, rather then speculative, I think prices will continue, over time to steadily rise. Perhaps not as sharply as places like the Mid Levels during "hot" times, but also they will not decline as sharply during "cold" times.
Here's my prediction for Park Island. Prices will be at cheapest 10,000 psf by 2015. Mark my works right now prices are super cheap. This one is so obvious that anyone looking back in 2015 will realize what a bargain it was. Prices will double from now in the next 5 years, so that's 20% increase a year.
ReplyDeleteI agree it is on an upward trend. To what extent is the rise is anybody's guess and Randy One's prediction is one of many in the spectrum. It is cheap in comparison as agents are now selling SHK property in Tuen Mun atop MTR at high prices(initial guestimate of release price of $10,000 psf). If Tuen Mun is now selling at $10,000 psf, then Randy's estimate is not overly optimistic. Regardless, Park Island is a safe bet as Blogger said most units transacted are end-user driven.
ReplyDeleteAccording to the property report at NOW TV the prices has gone up by 9% last week. Not bad but still has a lot of potential.
ReplyDeleteBanks are certainly upgrading the valuations for Park Island. Check out for yourself
ReplyDeleteI bought roughly a year ago now and everyone was saying it was stupid but we wanted a home so was mainly buying to escape the hassles of renting. 1 year later and my flat has gone up by 300k+ according to the online bank evaluation, obviously this trend may not continue, it could even drop (as many predict) but man oh man, it is SO MUCH MORE enjoyable owning your home, the freedom to decorate and plan your home as you wish, not worrying every year about a rent increase, not waiting for the LL to fix things etc is all lovely !
ReplyDeleteCongratulations, good decision and prices are more likely to rise than fall. Curious as to why everyone said it was stupid. Was it the timing or PI? You form the vast majority of owner resident who enjoys living in PI. What's more, interest rates is expected to remain low so you get the added benefit of low cost in an affordable super housing development.
ReplyDeletePeople thought it was stupid because they were and maybe still are expecting prices to dramatically fall.
ReplyDeleteThe person that sold our flat to us went on to rent another flat in PI, I suspect he did this expecting prices to fall, all fair enough and maybe they will turn out correct but in his case I thought it was risky as he had a full family to think of too so if he has made a wrong move, he has potentially made it more difficult to 'get back into the market' now if prices increase past his salary increase (when moving within Park Island anyway).
Also another friend of mine sold his flat to rent (not in Ma wan), expecting to buy in at a cheaper price as his brother was an estate agent who told him prices would fall....but guess what they haven't in his complex, they've gone up a bit if anything. But in his case, he was a single guy, no kids so not as bad.
I just think if you are buying to live in, there is no 'right time', just buy at the level that is suitable for your home income, taking into considerations of future interest rate increases etc.
ps: Some people also said we were stupid because the location wasn't good as there are no cars allowed and there was no MTR but these are also the sort of people that are living in tiny old apartments above some MTR paying way more than what we would with laughable facilities (in comparison to PI ) and usually next to some 24/7 main road !
ReplyDeleteI think, for many locals (and some younger/singleton expats) they do not put much value on quietness, low traffic, low human congestion, nature or localized pollution (car fumes, dust/noise from construction etc), all they think about is location to the MTR....this I'm happy about actually as otherwise we'd not of afforded a flat in PI !
The majority of locals work 10 hour days. Convenience is a big issue. I'm sure they'd want to live in a better environment if they could.
DeleteAnon - I think you are very right. I myself had concerns about the "inconvenience" of living on Park Island initially. After I moved there, I was amazed how convenient it really was! 20 mins by ferry to the heart of Central (and a nice quiet ferry, and you can always get a nice seat), 15 mins by taxi, regular shuttles to the airport, busses departing every 5 mins to various parts of HK, and yet most of the Island banned to traffic altogether except certain locations for pick up and drop off.
DeleteI have friends remark that they would pay EXTRA for the absence of traffic, and absence of the accompanying noise, fumes, etc (as well the the safety issue if you have kids or pets) and yet Park Island, right now, still sells and rents at a significant DISCOUNT to prices on HK island (which are much smaller, lower quality, older, etc).
So, go figure... I think commonsense will prevail over time as HK'ers become more "Westernized" in the approach to living, start to value health and living quality more for themselves and their families, which in turn will in my view, drive up demand, and prices, for Park Island in the future.
Well said. There is no "right time" and it depends on individual circumstances. After having watched property prices for a good 18 years, not just in HK but also in the UK, I have seen many cases of people selling thinking prices would collapse, only to find that their hopes had vanished in thin air and could not get back in the market again. It is risky to time the market unless we have the crystal ball!
ReplyDeleteHi I found your site very useful with excellent photos and content. I checkout Park Island as a result as was impressed. Initially I considered renting but I think now maybe I should just buy as it seems still really quite afforable and long term prices will rise all over Hong Kong.
ReplyDeleteWould you suggest to buy now, can you suggest a realtor and also is it still now a good time to buy now?
My feeling is that right now is still a good time to buy on Park Island. I believe prices there are well below their value, as Park Island is only really now becoming known among wealthier people, expats etc who are now starting to move there for the high quality of living. You can see my pricing predictions for Park Island on other parts of this blog, but in summary I feel it woudl be a very solid investment, likely to appreciate 8-12% each year for the next five years (and possibly more if China goes through another growth phase).
DeletePS - in terms of estate agents, I would suggest simply coming over and dropping into one of the estate agencies on the island. They usually will have a number of places for rent and sale they can show you.
DeleteHi, what is the source for the prices in the graph?
ReplyDeleteThe data comes from one of Hong Kong's largest real estate agencies, called Centerline Property. The publish pricing data every week, based on all recorded transactions.
DeleteHi! The Park Island property here refers to the high rise apartments right? Or all the properties located at Park Island as per the whole island.? Does that include the village houses? Would this be also a sensible buy for self stay and possible asset appreciation? Appreciate your thoughts.
ReplyDeleteHi Lauren - yes the price graph here refers only to the high rise Park Island condos The village houses are a little cheaper (although bear in mind if you live in a village house you do not get access to the condo facilities like pool etc, although I do know some people who live in the village and yet manage to "sneak" in to use the facilities, by using access cards of friends who live in the Park Island estate!
DeleteHi Cui, the banks's valuation is very important when you decide on a property purchase. Do talk to a few banks for their valuation. When they give their valuation whether verbally of thru desktop, there is a reference number stated and an expiry date. Before you start on this you should have at least some details on the property.
ReplyDeleteI agree. For Park Island the banks pretty much are valuing the apartments at their current asking prices and they see Park Island as a "low-risk, non-speculative" property, so you should be able to get a loan based on the price that it is advertised for sale.
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