It’s said that one square foot of land in Hong Kong is worth its weight in gold.
That’s why many people live in a shoebox.
Despite a falling market, we are no better off than a car, according to a Facebook post by Leung Kai-chi, an assistant program director in the Chinese University of Hong Kong.
His reasoning is quite simple.
The smallest parking space in Hong Kong is 2.5 meters by five meters, according to the Planning Department.
Leung says that’s the equivalent of a dining room plus an open kitchen or a bedroom with a washroom in a typical new flat.
You don’t need a lot to figure out what it looks like in terms of space and design.
Just go to any car park and see how a flat can fit in two car spaces.
According to Leung, a 310-square-foot studio in a new residential project in Tseung Kwan O is priced at HK$14,119 (US$1,817) per square foot, or HK$11,365 after a 20 per cent discount.
That’s like two car parking spaces which the developer touted as a “jubilant entry price”.
As it turned out, all the studio and one-bedroom units in the development were taken up last month.
So were most of the units below HK$4 million in a non-urban development, especially with developers willing to offer 80 percent mortgage with no income proof.
Friends tell me that second-hand units in older housing estates priced below HK$3 million are often quickly snapped up.
There seems to be good support for the low-end market amid a weak economic outlook, coupled with another US interest rate hike anytime soon.
I wonder how the market will respond to a parking lot with a roof on it and built to look like a flat.
But even a parking space is not cheap. A small car park in Tseung Kwan O recently fetched seven figures.
So, is it better to be a car in Hong Kong? You decide.
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