The search for hidden gems among Hong Kong neighborhoods now takes us to A Kung Ngam, a little known backwater near Shau Kei Wan that is hitting the big time.
It’s no big secret that residential property gems are almost impossible to come by on Hong Kong Island, but we believe we have come across something that might make people turn their heads.
A Kung Ngam is a relatively less known area near the Aldrich Bay Promenade. It is a village on the waterfront that currently has a fish market, several temples and is host to the Hong Kong Museum of Coastal Defence.
It looks quite a bit like Lei Yue Mun, with its boats, dockyards, industrial buildings, and temples, but you can be sure that is going to change. The Hong Kong Sanatorium & Hospital, which treats Hong Kong’s rich and famous, is set to open a new complex in the area in approximately 2020. That fact alone should alert investors to a new opportunity – it’s time to wake up and smell the potential.
Currently, industrial building rents in the area are around HK$10 per square foot, which is surprisingly low in a place like Hong Kong. Hence, it might be reasonable to ask why this area is currently being ignored. In a city where golden opportunities are rarely missed, why has A Kung Ngam not received enough attention?
Well, first of all, the area has no access to the MTR (the closest stop being Shau Kei Wan), and in general has very poor accessibility. Secondly, there aren’t any single-ownership buildings in the area, so it will be hard to regenerate the district without some kind of assistance from the government.
Still, there is precedent here when looking at similar areas in Hong Kong. Yau Tong, for example, was previously a no go area for potential investors and residents, with dockyards and industrial estates dominating the landscape. Then came the residential developments, including Canaryside, Ocean One and The Spectacle.
Recent buyers of plots in Yau Tong include Wheelock, which was involved in a HK$6.39 billion deal, and Minmetals, with a HK$$4 billion purchase. The area is now a well-known residential area.
Similarly, the West Kowloon district was nothing more but a wasteland before the announcement of ICC, the Hong Kong-Guangzhou rail link, and the development of a whole new cultural district.
Coming to A Kung Ngam, is it possible that the Hong Kong Sanatorium & Hospital complex project will have the same galvanizing effect on the area?
Keep your eyes open and ears close to the ground.
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