|Park Island Price Graph 2017|
Prices now average at $ 9619.55 psf net, (and over $ 12500 psf gross).
Prices have followed a relatively constant growth trend since 2009.
I spoke to an experienced developer’s daughter last month who told me that her family believe average prices will hit over 10K psf net by Chinese new year. (By the way, this also makes it very easy to calculate price. For example a 550 net psf average apartment price would be 5.5m HKD). She expected relatively solid growth of 8% per annum over the next 2-3 years, and indicated that she would only be concerned if overall HK prices spiked up something like 20% in a year, which would in turn lead to a further fear of missing out HK-style frenzy (which would in turn eventually lead to a bubble burst). China values social stability and so would ideally like to see contained but constant, non-volatile growth for HK in a way that keeps the majority of people happy she said.
We also discussed the possible development of boutique condos on the old village part of Ma Wan. She is not sure yet what price they would sell at, but it would be higher than anything currently on the secondary market for Park Island. A big factor in pricing will also depend on whether car parks are provided for such condos (something which surely will be a point of negotiation for any developer – who quite possibly will be Sun Hung Kai). Either way, the higher sales prices of any new development, not to mention the extensive awareness and marketing publicity for Park Island will obviously lead to a pricing bonanza for the Park Island secondary market. Every possible buyer will also view and consider existing apartments, and every sales agent will be offering both as purchase options (although they will be incentivised by the developer to push the new development). We could expect to see Park Island prices move up strongly on any confirmation the boutique development will commence, then in a second phase of growth once the development gets underway, a 3rd phase once its actually built and marketing and sales start, and then lastly with an ongoing “halo effect” as higher-end buyers become increasingly aware of Park Island due to the existence of the boutique development.
Agents have indicated that the strongest demand at the moment for buyers are for the small 2 bedroom apartments, and so called “combined units. Rental demand for all unit types is strong, with there being very strong demand among expats for larger units in the estate. Yields remain flat, with rentals increasing also, but not quite as fast percentage-wise as property valuations.
Increasingly, expats are also considering the Ma Wan New Village as a living option also, whereas historically this appealed more to local people. Some expats living in the New Village are still able to sneak in to the various Park Island club facilities (more on how this is done in a future posting).
The long awaited beach widening is still coming, albeit delayed by various claims by Ma Wan shrimp farmers who claim the dredging needed for the widening will affect their business. I can’t wait till this is done – the beach is going to look stunning once double the width and I can’t wait to make use of it!