An update on private car access for Park Island Residents - implications of the Tuen Mun - Chek Lap Kok Link

I've written on the topic of car access to Park Island for residents before and it is always a topic of interest, both to Park Island residents who prefer not to have car access (due to wanting to limit public access/noise/pollution etc) to Park Island, and those who prefer to have cars, due to both the convenience and the likely significant boost in property prices that would undoubtedly result (welcomed by owners, but no so much by those of who rent apartments on Park Island.).

See: http://parkislandhongkong.blogspot.sg/2010/11/will-private-cars-ever-be-allowed-on.html

I recently received an interesting "unofficial" update today from a senior Hong Kong Transport Department official that I will now share.

As some of you may know, in the past, one main reason cited for not allowing private cars for residents of Park Island has been that the Transport Department had concerns about the effect on traffic congestion over the Tsing Ma Bridge and the Kap Shui Mun Bridge that connect to the airport (and which also connect to Ma Wan / Park Island). This is the sole connecting highway to the airport, and the Transport Department prefers to keep this prioritized for traffic essential to connection to the airport. (A more cynical reason that has been suggested is that Sun Hung Kai did not pay enough money at the time they secured the development rights to develop Park Island to get the approval for car access included as part of the development deal, but that is another story, for another time...). Many existing residents, me included, have long been skeptical of the "traffic congestion" reason given, and have calculated that allowing private cars to residents would have no significantly noticeable effect on traffic flows.

There are currently two massive infrastructure projects that have been announced in Hong Kong. The Tuen Mun – Chek Lap Kok Link ("TM-CLKL") and the Tuen Mun Western Bypass ("TMWB").

See the photo with markings below:

Tuen Mun Chep Lap Kok Link

Existing Road connected to Hong Kong airport and proposed Tuen Mun - Chek Lap Kok Link

This is a massive $50 Billion project, due for completion 2018. More details on the project here:

a) Tuen Mun - Chep Lap Kok Link ;

b) http://www.hzmb.hk/eng/about_overview_04.html

Right now the single connection to the airport in Hong Kong, and the rest of Hong Kong (and indeed also to the New Territories and China) is the so-called Lantau Link (which the Tsing Ma Bridge and Kap Shui Mun Bridge are part of). But this will change once the Tuen Mun - Chep Lap Kok Link has been completed. Once that development is complete, traffic from Tuen Mun, the New Territories and ShenZhen China all have a second highway route to and from the Hong Kong Airport.

All of this is of course part of the overall master-plan to connect the entire Pearl River Delta. That is, in particular, Hong Kong, ShenZhen, Macau and ZhuHai. See the big picture below:

Pearl River Delta HZMB

Hong Kong - Zhuhai - Macau Bridge

So, how does all this fit in with Park Island, and the topic of private cars? Well the senior Hong Kong Transport Department official I spoke to told me that "people who want private cars on Park Island will be happy after 2018 ... Let's just say, after that there is a good chance that private cars will be allowed. Although I cannot guarantee you that, you can make your own conclusions as to how it will happen.".

Here is a little more detail, on what I think will happen. First there will be an exclusive resort type development built on the undeveloped part of Ma Wan. The views are stunning, and given the connectivity to both HK on the one side, and Macau/China etc on the other, it greatly enhances with appeal of such a development, particularly if there is car access. (I have already posted previously the location where the car parking for residents is likely to be placed on Ma Wan). 

Secondly, we have a clear precedent of how the connection will look like, with the current Sunny Bay Road that is connected to Hong Kong Disneyland (notably also with an MTR station.). There is exactly the same type of land reserved on Park Island for such a highway connection.

Sunny Bay Road to Hong Kong Disneyland

I know some Park Island residents will have mixed feelings about the likelihood of private car access in the future, but for Hong Kong property investors its a massive opportunity to be excited about. Imagine the effect of being a property owner on Hong Kong island, with the announcement that a new escalator will be built, or a new MTR station, near your apartment building. That is the kind of news that makes prices rocket up, first on the initial announcement, and then, on an ongoing basis as the actual date of reality approaches. The same effect will happen with Park Island. I believe, that quite apart from decent price gains that will occur over time as people in general become aware of the high quality of living offered on Park Island, and as Hong Kong prices continue to rise with the rate of inflation, there will be MASSIVE gains as and when there further indications and confirmations that suggest private car access is imminent. Right now the market for property on Park Island (and indeed all of Kong Kong) is relatively quiet. But in the right circumstances, Hong Kong investors can whip themselves into a frenzy, and suddenly, when that happens, property suddenly becomes incredibly scarce, and people wishing to buy feel priced out by "crazy buyers", only to keep seeing prices rise after such buyers have purchased.

In my view Park Island is still a relatively affordable investment at present, and so buying now, with the prospect of massive upside in the future makes it an investment to be seriously considered. Its the sort of thing where people who do not buy now, may well, in the future be cursing themselves "If only I had bought...", "I wish I had known", etc. My guess, as to what would happen if private parking for residents was confirmed, is that prices could easily double from present levels.

So there you have it, fellow Park Islanders, and Hong Kong property investors in general. Do your own research, but don't say (in 5 years time), that you were not warned... :)