Mei Foo: Keep Resilient and Carry On
穩步上揚的美孚
According to recent figures from the Rating and Valuation Department, Hong Kong's property price index in June dropped to 393.7, down 0.8 percent month-on-month, after rising for five consecutive months. The city's ongoing political unrest and a faltering global economy are the most agreed-on culprits for property market jitters, but a downward cycle has yet to be confirmed. Whether in a bull or bear market, there are both rigid and elastic demands to be satisfied. While home buyers and renters are most concerned with price and location, investors tend to consider long-term factors such as transaction volume, capital gains, management and maintenance.
Just as many first-time buyers pour into the primary market for ownership (due to extra mortgage loans offered by developers), savvy investors are seeking greater yields in blue chip private residential estates, given the generally higher number of transactions and lower management fees, and that these older residences are mostly without mortgage loans, meaning more resilient prices upon market correction.
Among the ten leading blue chip private flats, Tin Shui Wai's Kingswood Villas and Sha Tin's City One Shatin are the most affordable, followed by Mei Foo Sun Chuen. The latter, though more expensive, normally enjoys better ROI as it is closer to the city centre and enjoys easy access to many districts, thanks to a well-established transport hub with two MTR lines and extensive bus routes throughout the city. Mei Foo is also graced with Lai Chi Kok Park, covering a total area of 17.65 hectares (Kowloon Park measures 13.3), making the area an ideal purchase and investment opportunity.
In the district of Lai Chi Kok, Mei Foo refers to the surroundings of Mei Foo Sun Chuen, the city's second largest private estate. The first building was completed as early as 1968, and has since evolved into a middle-class neighbourhood. Despite the old building age, the estate is still of good quality and its price growth is astonishing: from HK$150,000 to HK$12 million in 40 years. Despite the lack of a vibrant vibe in the community, it nonetheless has a good handful of shops and dining spots, as well as car parking spaces.
In addition to the unpretentious Mei Foo Sun Chuen, Lai Chi Kok has another more welcoming residential hub featuring four main private estates: Banyan Garden, The Pacifica, Aqua Marine and Liberté, widely known as the “Four Little Dragons of Kowloon West”. Mei Foo Sun Chuen boosts large units but offers no clubhouse amenities while the Four Little Dragons have more two-bedroom flats, modern facilities and, of course, a much younger neighbourhood. That said, newer is not necessarily better; it really depends on personal needs. Both hubs are popular choices among the middle class.
According to data from squarefoot.com.hk, Mei Foo Sun Chuen had an average persquare-foot price of HK$14,605 in July, a 6% increase from the previous month. Nearby private residences include Nob Hill, part of the former Lai Chi Kok Amusement Park site and Manhattan Hill, the former KMB Lai Chi Kok Depot. The Home Ownership Scheme (HOS) estate in the area is Ching Lai Court.