According to JLL's latest Hong Kong Residential Sales Market Monitor report, only two remaining residential sites to be tendered on the Kai Tak runway could enjoy Victoria Harbour views after the government awarded the tender for Kai Tak Area 4C Site 1 site. Developers will remain keen in acquiring sites in Kai Tak because there are fewer land supply with Victoria Harbour view.
According to the information from the Town Planning Board, there are only two remaining residential sites to be tendered on the Kai Tak runway where future unit could enjoy Victoria Harbour views. Yet, the views will be more obstructed as the sites are located further away from the tip of the runway.
Beyond Kai Tak, there will be an extremely limited supply of Victoria Harbour seafront residential developments completed in the city's urban areas. Our data on future supply suggested fewer than five such residential projects to be completed between 2019 and 2020.
The winning bid for the latest Kai Tak site remains high, despite the escalation of tensions between the US and China and a bout of social unrest has dented market sentiment. Henry Mok, senior director of capital market at JLL, said: "Most of the future units on the sites in Kai Tak former airway runway area can enjoy unobstructed sea views, is already being imagined by the market as a future high-end residential area within the city. It attracted the interests from Hong Kong and mainland developers. We expects developers will remain intact on the remaining two waterfront sites."
Cathie Chung, senior director of research at JLL, said: "Also, there were 57% of the government residential sites up for tender in the first half were sold to mainland developers and their consortiums. It is higher than the 43% recorded in the second half of 2018. It suggested the mainland developers remain optimistic on the city's housing market over the medium-to-long term. We believe another reason is most of the sites up for tender are in Kai Tak, which is a familiar market to many mainland developers and in prime location. It led the mainland developers turned active this year."
Co-living market is taking off in Asia Pacific as more people migrate to cities for jobs or education opportunities. This is opening up new opportunities for real estate developers and investors around the region.
Less than 100 new luxury units (1,722 sq. ft or above) will be completed in Hong Kong's traditional luxury residential areas, including The Peak, Southern district, Kowloon Tong, Homantin and Mid-Levels, in 2019.
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