Park Island Property Prices, back to record highs!
Here's where we ended up as we head to the close of 2016.
|Park Island Property Prices 2016|
Prices rocketed up in the latter part of 2016 to hit new highs, primarily on buyers continuing to see the great value Park Island offers.
We are now at an average price of over $11,000 psf net, and over $8,500 psf gross. The attached graph shows gross prices.
What is the difference between gross and net property prices in HK? The "saleable area", or "net area", is the actual size of a home, including balconies. The gross price is the floor area which includes both the saleable area plus a share of the common areas, bay windows and facilities). So, if you are looking purely at a measure of internal space for property in HK, go by the net area (aka saleable area). See here for a more detailed explanation: Gross sqft vs Net sqft SCMP article.
Readers may be interested to see how where we ended in 2016 compared to my predictions and forecasted extrapolations for property prices on Park Island back in 2014 Prediction for HK property prices (Park Island).
The trend running from 2009 to 2016, for Park Island, is pretty much intact. What will happen to HK property prices in 2017? And how will interest rates affect prices and rentals? I'll comment on that in some future posts.
If punters want to have a go at predicting prices by end of 2017, feel free to post in the comments. I might award a prize end of next year to who came closest? (Any local Park Island business wish to sponsor?)
The important thing to remember is that money always flows to quality and value. Long term, the future of Park Island is very positive. Park Island may well benefit as HK connects with Macau and Zhuhai etc, but the biggest "pay off" of all (from a capital gains perspective) will come when, eventually, private parking is finally made available (expect 50% rises in prices when that happens, and probably not until 2022.).
Finally, some readers have told me they have seen Google adverts being run on my blog. I can't see any myself, but if anyone sees such ads, do let me know. Not quite sure what is going on there.
Merry Christmas Park Islanders!