Kowloon Bay: The New CBD
As the stock market fluctuates and the surrounding economic environment becomes increasingly unstable, Hong Kong's housing market stays flaccid. Secondary market transactions stay stagnant while home owners are starting to lower their asking prices, resulting in a few low-price sales. A low-level unit in Tak Bo Garden, Kowloon Bay, with a saleable area of 282 square feet, was sold in October for HK$4.33 million—a HK$870,000 reduction from its original price when it was listed in June, making its per-square-foot price below standard market rates.
As an integral part of the “Energizing Kowloon East” initiative, Kowloon Bay is gradually transforming into the core business area of Kowloon, packed with enormous potential. The in-construction East Kowloon Cultural Centre, located right by the Kowloon Bay MTR station, is the second government-funded culturerelated construction project after the West Kowloon Cultural District. The authorities are also planning on building a footbridge network in Kai Tak connecting various areas in central Kowloon Bay. More facilities will be developed in the area in the future. In addition, as many commercial organisations move their operations from the costly Central CBD to East Kowloon as a way to save costs, commercial and industrial real estate in the area packs great potential in terms of investment value. In fact, thanks to the development of the area and the overall market trends, Kowloon Bay's market profile and acceptance are on the rise, which will hopefully benefit its residential market as well.
As secondary market prices continue to drop (especially for small units), it's advisable for prospective buyers to keep an eye on home sales in Kowloon Bay and make purchases while prices are down. Of course, investment value shouldn't be the only thing home buyers focus on, and the good news is that apart from its robust development, Kowloon Bay also boasts great living conditions and a premium location as the centre of East Kowloon. In the future, residents can also enjoy easy access to the Sha Tin to Central Link via Diamond Hill MTR or Kai Tak stations. Sitting atop the Kowloon Bay MTR station, Telford Plaza hosts a variety of shops, restaurants and supermarkets as well as a cinema, providing daily necessities to local residents. Nearby there is Amoy Plaza with dining outlets, shopping centre Megabox with a string of furniture stores including IKEA and the Kowloonbay International Trade & Exhibition Centre (with E-max Wearhouse). Those who enjoy sports or green spaces will like the Kowloon Bay Sports Ground, Kwun Tong Promenade and the Kai Tak Cruise Terminal Park. Meanwhile, the East Kowloon Cultural Centre is expected to open in late 2020, by which time Kowloon Bay will have a lot more arts and cultural activities to offer.
According to sales data from Gohome. com.hk, Kowloon Bay's two major housing estates—telford Gardens and Amoy Gardens—saw a total of 18 sales in September, with per-square-foot prices at HK$12,538 and HK$14,286, a 6.1% and a 2.62% drop respectively compared to the previous month.