Residential property prices have been on the rise in the Western District, riding on upbeat sentiment in the rest of the market. With the opening of the MTR HK Island line in Sai Ying Pun, Kennedy Town and HKU we have seen an increment in both rental and sales values. Looking ahead, growth momentum is likely to slow alongside the interest rate hike and increased supply pipeline as a handful of new developments will be established in the Western District.
Some of the more popular residential locations in Western district are Sai Ying Pun and Kennedy Town due to the proximity to the MTR stations. Location, yield, facilities and layout/efficiency are key considerations for both purchasers and those looking to rent properties. The popularity of these neighbourhoods has brought about relatively high rentals in relation to the small floor areas. For some people however, the modern finishes, high end appliances and extensive clubhouse facilities compensate for the smaller floor spaces.
For purchase, The Belcher’s and The Merton are attractive options for would-be home buyers in the secondary market. New launches are also sought after though these would depend on the timing of the launch. Recent new sales developments in the area include Imperial Kennedy and Bohemian House, whilst 97 Belchers provides an attractive modern choice on the rental market.
Probably one of the main considerations in buying residential property in Hong Kong for expats would be to check mortgage eligibility as well as applicable stamp duty rates before signing a Preliminary Sales and Purchase Agreement, and also setting aside sufficient cash for upfront closing costs, such as stamp duty payments. For non- locals, stamp duty rates can be as high as 30% on the property price.
Properties nearby infrastructure development or MTR lines have been said to show greater pricing resilience. Some recommendations for buildings within a 15-20 minute walking distance to nearby international schools are Cadogan, Lexington Hill, Belchers, Harbour One, Centrepoint, 80 Robinson and Alassio. The Merton and Manhattan Heights are also 15-20 minutes’ drive to Kellett at Pokfulam and Harbour School at Aberdeen.
Looking for a home in Hong Kong? Please contact Laurie Lankester – Associate Director, Residential Leasing and Relocations Services.