Hong Kong apartment for rent by owner in the North Point area of Hong Kong is about to receive a boost. Read on to find out why.
Real estate market experts claim that there is a new trend in the real estate prices in North Point and record prices were reported for office and residential projects. Colliers International, a reputed property consultancy, expected that the rents for prime offices in North Point and Quarry Bay will increase by 4% this year. This is good news for landlords looking to rent or sell their property directly and thereby avoid agency fees. North Point is the eastern district of Hong Kong with a large working class population. It includes a large number of old buildings and new structures. It has office towers, with glass walls, high end residential apartments, and also the State theater, a Historical Grade one structure, many buildings which are decades old, and a wet market.
A new record for residential properties was set when Sun-Hung Kai Properties sold an apartment in the property developed at Victoria Harbour for HK$ 61,000 per square feet which is equivalent to US$ 7777 per square feet. The price of $9.95 billion dollars for the office tower at King Wah Road, sold by Henderson Property development was another record. It is believed that the opening of the Central Wan-Chai Bypass road connecting the district with central area has resulted in the increase in the property prices. The 4.7 km bypass has an underground tunnel of 3.7 km and flyover, reducing the travel time to the Central area from 15 minutes to 5 minutes.
The research section at JLL has confirmed that the opening of the bypass and change in the profile of tenants in Eastern Hong Kong has forced the developers and investors to change their rates significantly and a Hong Kong apartment for rent by owner in the area will cost more. Colliers expected that the places close to the exit of the bypass are likely to benefit the most, since North Point has other facilities like bus, ferry terminal, train station which are similar to those in the central area. The opening of the bypass has also resulted in an increase in the property demand for Quarry bay, the adjoining district.
Many large organizations like Facebook, EY and the market regulator for Hong Kong have relocated to the area. Quarry bay has a large amount Grade A office space, which is the largest high quality office space in Hong Kong after the central area. New World Development and Henderson land are expected to add to the office space available in North Point. However experts point out that the property rates depend to a large extent on the economy of Hong Kong, which may be adversely affected by the trade war between China and United States. Though the Eastern District has the best growth in property rates, in future the rates of a Hong Kong apartment for rent by owner will depend on other factors.