Date
20 August 2017
(From left) Kornhill Gardens, Tak Tin Estate, and Sea Ranch residential complexes. Prices of units at all these properties have hit new highs. Photos: HKEJ, Google Maps, koming.com.hk
(From left) Kornhill Gardens, Tak Tin Estate, and Sea Ranch residential complexes. Prices of units at all these properties have hit new highs. Photos: HKEJ, Google Maps, koming.com.hk

Prices of subsidized housing units soar to record highs

Defying government efforts to cool the market, property prices in Hong Kong have been hitting new highs in recent months, with the trend also impacting valuations of subsidized housing units.

This is evident from transactions in the past few weeks of apartments at Kornhill Gardens in the Eastern District.

The Hong Kong Economic Journal reports that the per-square-foot price of Home Ownership Scheme (HOS) flats at Kornhill Gardens reached HK$16,700, a historical high for HOS flats in the city.

Property agents were quoted as saying that there were three transactions in May involving units at Kornhill Gardens.

Among them, a unit in Block 2 of the residential estate was sold for HK$7.19 million, or HK$16,700 per square foot, on the secondary market, marking a new record for HOS flats.

The previous high for such units was HK$15,900 per square foot, involving a unit at Kwun Hei Court in Ho Man Tin in March.

Only 20 out of the 2,200 units at Kornhill Gardens, which was completed in 1986, are said to be on sale on the open market at the moment.

A regular two-bedroom flat has an asking price north of HK$7 million.

Elsewhere, other public housing flats are also changing hands at unprecedentedly high prices.

For instance, a flat at Tak Tin Estate in Lam Tin saw the price smash through the HK$15,000 per-square-foot level for the first time at the housing complex.

The unit, which has a net useable area of 165 square feet, was recently sold for HK$2.48 million. The owner is said to have made a profit of HK$1.28 million from the transaction.

According to Billy Tse Po-chiu of Century 21 Luen Shing Property Consultants Ltd., the buyer will lease out the unit.

Amid the red-hot market, prices have surged even for homes in remote locations.

Two units of the Sea Ranch, a 200-unit 1970s luxury resort in southwest Lantau, fetched HK$3.55 million and HK$3.7 million on Thursday, up 57.8 percent and 64.4 percent respectively from the starting prices.

The two flats, each offering net useable area of 1,240 square feet, were put up for sale in an open auction following a court order.

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