Park Island Apartments pass through $10,000 psf
Last week, prices on Park Island for the first time ever broke through an average of HKD $10,000 psf (per square foot), coming in at $10,218 psf (net) for the week ending 6 March 2015.
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| Park Island Price Graph 2015 |
Note that the graph above shows gross prices (ie the price calculation that was formerly used in Hong Kong, which included external space, lift lobby, fire exits etc). The price that is now used in Hong Kong is a net price (ie only the internal private space of the apartment itself)
Gross prices also hit a record high, coming in at $7,865 psf.
The $10,000 psf price is something I predicted in the post Centa city Hong Kong-Property Index would happen early in 2015.
I think its likely prices will continue to increase, based both on continued historically low interest rates as well as mainland monetary easing leading to more cashed up Chinese able to invest in Hong Kong property. I also think that there is a huge amount of suppressed value in Hong Kong property due to all of the cooling measures priced in, which eventually will need to be relaxed.
Over the last week I had a very interesting discussion (and quite a clear and promising update with the Hong Kong Planning Department regarding car access to Park Island for residents). I will elaborate on that topic next week.
anxious about more info about private car access!!!!!!
ReplyDeletethey are still very much good value. i can see them rising another 25% next few years.
ReplyDeleteIf they allow car access, the prices will jump up very quickly also.
ReplyDeleteLooking at the graph, prices have risen pretty much consistently every year since 2009.
ReplyDeleteIf u want car access be careful what u ask for. Yes prices will go up but for residents will it actually me more livable? I like it very much the way it is right now/
ReplyDeleteStill pretty reasonable prices on Park Island for what you get. Prices in NZ, Australia, especially Sydney and London are crazy high right now and make Park Island look positively cheap by comparison. Are the park island apartments lease hold or free hold?
ReplyDeleteWhy prices will keep going up? China is trying to integrate (take over) our country by FLOODING IT WITH MAINLANDERS. Cheap loans to Chinese from the Chinese banks and cash flood in the mainland combined with increasing restrictions on our own people to by property in HK is part of China plan to take over HK. So unfair as to not allow HK people to easier buy a place to live!
ReplyDeleteI dont agree with your sentiment or your racial bias!!
Deletenot only you are racist, but you seem to be uneducated as well. nothing you said made any sense.
DeleteJust so readers know, I regularly receive racist/anti-Chinese comments posted on this site. Most I remove, but I accepted the one above in the interests of open discussion. But to be clear, I will remove blatantly racist and unnecessarily offensive comments.
DeleteAnother week. Prices up again. Mainlander caused or not, if you don't stake a claim to a property in Hon Kong now they will buy you out of the market and CONDEM YOU to be a renter slave at their mercy.
ReplyDeletePrices went up again this week. It would keep going up especially if cars allowed approved.
ReplyDeleteHello, I was over on Ma Wan this weekend looking at possibly buying. I must say it is very relaxing and high quality. The only issue is the car issue. I would be interested to hear from any residents how you you cope. I work HK side near central and wife in TST. We are considering a 2 or 3 bed room place with maids room but really need guidance on the transport issue. The agents of course tell you no problem. It it was not for that I would see Park Island as a bargain buy. Also is there any library or post office on the island?
ReplyDeleteIt is a nice island.
ReplyDeleteBlogger can you update us on "very interesting discussion (and quite a clear and promising update with the Hong Kong Planning Department regarding car access to Park Island". As far as I know that will not come until 2018 or 2019 at earlierst. Even then if announced it may take some time for approval.
ReplyDeletesux prices keep going up
ReplyDeleteNot sux for those who own property mate. Park Island went up again based on this Friday just published CCI Property index results.
ReplyDeleteI can't see the current growth trend slowing until 2018 or so.
ReplyDeleteAsking prices are over 8500 psf gross and well over 10000 psf net. Best tactic for buying might be to find an older owner who is not as up to speed on the market and recent prices. The one advantage us younger folks have is access to information through technoligy.
ReplyDeleteWouldn't prices fall with the China economic slow down starting to set in?
ReplyDeletePossibly, although the irony is that with a China slowdown comes monetary easing (ie the banks in China are told to and permitted to lend more), leading to more money flowing into the stock markets and real estate markets. This is what is happening at present, and you can see it reflected in Chinese stocks hitting record highs.
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