Where the Hong Kong MTR goes, property boom follows
Where the Hong Kong MTR goes, property boom follows
Fierce bidding ahead
Two districts in Kowloon, Hong Kong are currently experiencing an uptick in home sales, courtesy of an expanding rapid transit line.
Residential capital values in the city’s Whampoa and Ho Man Tin districts have risen 95 percent and 80 percent respectively since the gazetting of a new MTR line in 2009, according to The South China Morning Post, citing data from the latest report on Hong Kong residential sales by Jones Lang LaSalle. The route opened Sunday after months of delays.
“Residential projects with railway connections have always been more popular with buyers,” said Henry Mok, regional director of capital markets at JLL. “Once the railway extension starts operation, properties in Whampoa and Ho Man Tin should be able to draw more interest from buyers, leading to an increase in transaction volumes and a possible boost in property prices in the two districts.”
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Extending for 2.6 kilometres, the new MTR route extends the Kwun Tong line from Whampoa to Yau Ma Tei by way of Ho Man Tin.
Capital values throughout the Chinese SAR averaged 61 percent during the period tracked, JLL noted. Rents in Whampoa alone have risen by 10 percent in the past month.
Such “MTR effect” would amount to fierce bidding for MTR Corp tenders in the final months of the year, the property consultancy predicted. Two of these tenders, which involve housing projects that would yield 800 and 1,000 units at the Wong Chuk Hang Station and Ho Man Tin Stations, respectively, evince much potential in particular.
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Source: Property Report