Tin Shui Wai tiny flat goes for more than HK$10,000 per sq ft

April 27, 2015 11:54
Tin Lai Court in Tin Shui Wai in Yuen Long district. A buyer has just paid HK$2.15 million for a tiny 212-square-foot unit in the residential estate. Photo: Google map

Home prices in Hong Kong continue to defy the government's measures to keep a lid on the market, with more areas witnessing new benchmarks in transactions, particularly for small units.

A flat in Tin Shui Wai, one of the few areas that had offered some comfort to buyers in recent times, has now seen a 212-square-foot unit being sold for HK$10,142 (US$1,309) per square foot, setting a new record for the area, Apple Daily reported Monday.

The buyer paid HK$2.15 million for the unit at Tin Lai Court, in a deal that translates to a 40 percent premium over the prices of other units in the neighborhood, the report noted.

The seller reaped a gain of nearly 140 percent as he is originally said to have purchased the unit for HK$910,000 more than three years ago. 

The latest deal suggests that the government’s planned supply of 74,000 new homes is very much needed, the report noted.

A manager at Many Wells Property Agents Ltd. was quoted as saying that the Tin Lai Court flat fetched a high price as it was the smallest available unit in the area, as most flats in neighboring buildings are larger and start at a price of at least HK$3 million.

Sammy Po, director of Midland Realty, said home buyers believe prices can only go up in the future, and therefore they are not hesitating to buy. People are purchasing if they can afford the down payment; the unit price, district and property-age are less of a concern, Po said.

The price-surge has come as a special stamp duty imposed by the government has restricted the supply of second-hand homes in the market.

Sellers tend to take advantage of the situation by being rigid on the price, a phenomenon that is leading to new records being set in secondary market deals.

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