Tseung Kwan O’s Rental Market
Since the escalation of the Us-china trade war and the introduction of new housing policies mid-2018, the growth rate of home prices in Hong Kong has continued to shrink. Residential prices in the private market have been falling for four straight months, while the Us-china trade tensions, the slowdown of China's economy and the Federal Reserve's rate hikes have given the real estate industry plenty of reasons to worry about the market trajectory in the new year. On the other hand, the government has raised the public housing ratio to 70%; this could lead to a decrease in private housing supply, which would in turn boost private home prices.
Under the current circumstances, many prospective buyers are staying put, with some even turning to rentals. The prechinese New Year period is traditionally a slow season for the rental market; renters will therefore have a better chance at negotiating a lower price with some landlords. In addition, looking for rentals in areas with a variety of property types can further boost the renter's bargaining power. In this sense, Tseung Kwan O—adjacent to the Kowloon East business district with a number of international schools located nearby—makes for an ideal place to seek rental options.
A third-generation new town, Tseung Kwan O has become a welcoming and welldeveloped neighbourhood, with numerous housing estates and an abundance of facilities. Hong Kong's housing market has been dominated by new developments in the past few years, and Tseung Kwan O has established itself as a hub for new luxury properties during this time, adding more diversity and appeal to its home market, which had been previously focused on small- to medium-sized housing. The variety of housing types currently available in the area ranges from subsidised housing and private estate to seaside luxury homes, villas and standalone houses, catering to different clientele. Many buyers and renters in Tseung Kwan O are young families who are moving out of their parents' homes in Kowloon East or Eastern Hong Kong Island, as well as middle-class households upgrading to bigger homes. They provide the local housing market with a steady stream of business.
As the residential market booms, the commercial real estate, hotel and retail businesses in Tseung Kwan O are also on the rise—take the colossal development complex that sits above the Tseung Kwan O MTR station as an indication. Furthermore, its proximity to the Kowloon East CBD makes Tseung Kwan O hotels and serviced residences an obvious choice for business visitors. In a few years' time, the opening of the Tseung Kwan O-lam Tin Tunnel and Cross Bay Link will effectively alleviate the heavy traffic in the area while saving travel time for residents going to various part of Kowloon and Hong Kong Island.