MTR Corporation’s first property project in Shenzhen is said to have drawn good demand, with several Hong Kong people among those lining up to buy the residential units.
Buyers are flocking as the units are priced substantially lower compared to similar apartments in Kong Kong’s border districts, Sky Post noted in a report Tuesday.
With transport links expected to improve further, people don’t mind regular cross-border commute.
Hong Kong’s rail operator recently launched its first residential property project in Shenzhen, offering it at HK$4,500 per square feet on average.
That makes the units almost 50 percent cheaper than property in Hong Kong’s Yuen Long district.
MTR Tiara, located in Longhua district of Shenzhen, attracted more than 3,000 people on the first day of sales launch, according to the report.
Some apartments measuring 890 square feet are said to have a price tag of just HK$3.6 million.
One Hong Kong buyer was quoted as saying that it will be more convenient to travel between Shenzhen and Hong Kong once the Guangzhou-Shenzhen-Hong Kong high-speed rail starts operations in 2017.
Samuel Kong, managing director of Midland Realty’s Shenzhen operations, said Hong Kong people are upbeat about Tiara as it is developed and managed by MTR.
He noted that Hong Kong residents have been increasingly buying up homes in Shenzhen over the past year as they are confident that property values in the border city will appreciate further.
Some young people who can’t afford to buy apartments in Hong Kong are opting to purchase properties in Shenzhen and rent them out, Kong said.
Rental yields of apartments near Luohu, Huanggang and Lok Ma Chau have been at 3 or 4 percent. Rentals in these areas recorded 10 percent growth annually in the past four and five years, he said.
Lawrence Poon Wing-cheung, a lecturer at the City University of Hong Kong, also said that unaffordable prices in Hong Kong are pushing youngsters go north to buy homes for investment.
However, if one wants to buy an apartment for own use, people must think twice before making their purchases, as some entry ports at the border are not available round the clock, he said.
Also, one needs to consider the security aspect if the property owners leave their flats unattended by going to Hong Kong early in the morning and returning only at dusk.
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