SHAU KEI WAN: A NEW POTENTIAL IN THE EASTERN DISTRICT

As the proposed vacancy tax looms, developers are becoming more active in selling long-held flats before the new legislation takes effect. According to research data from Ricacorp, new homes registered over 20,000 transactions in 2019, reaching a record high since 2014. The estimated private home supply for 2020 is around 27,000 units, with the majority of them located in Kowloon and the New Territories. It is no secret that the demand for private homes on Hong Kong Island has been strong, given that there has been an inadequate supply for years. At the end of 2019, there were only two new residential developments– Ap Lei Chau's 66 Lee Nam Road Project and North Point's 133 Java Road Project– awaiting pre-sale consent. The continuous lack of flats has triggered an increase in prices that many first-time buyers can't afford. Despite stocks remaining low, the situation is steadily improving with ongoing urban renewal plans, as well as the growing trend of small units and the recently relaxed mortgage rules for first-home buyers. As a result of these influences, more entry-level homes are made available on Hong Kong Island, and the rising supply of flats is evident in the old residential neighbourhood of Shau Kei Wan. As the redevelopment projects are underway, Shau Kei Wan, one of the oldest neighbourhoods in the Eastern District, has seen many new small- and medium-sized flats surfacing. These units are drawing attention after last year's Policy Address announced that first-time homebuyers can borrow up to 90 per cent for properties valued below HK$8 million, compared with the previous ceiling of HK$4 million. Not only are Shau Kei Wan's new units popular amongst buyers, but also investors, considering the relatively higher rental returns these units can usually offer. Benefits of housing policies aside, Shau Kei Wan itself is graced with comprehensive leisure facilities. The district boasts proximity to the commercial hub in Hong Kong's Eastern District and is within comfortable distance to the CBD. Further, it is home to a wide range of mom-and-pop shops, along with several wet markets. Best of all, there is a myriad of dining available nearby, in particular along Shau Kei Wan Main Street East, which is also known as Food Street. The area has no shortage of public transport, ranging from the MTR, tram, as well as various bus and minibus routes along Shau Kei Wan Road. With a good balance of old and new, Shau Kei Wan is a district that is rapidly evolving. Once a fishermen's village, the district still retains some of its traditional elements, such as the Chinese temples worshipped by the fishermen, while at the same time, it is undergoing something of a gentrification— stylish shops, cafes and upscale restaurants are abundant, gradually raising the neighbourhood's profile. According to data from Centaline Property, Shau Kei Wan averaged around HK$24,952 per saleable square foot in December, a 7.2% increase from the previous month. Newer residences in the area include Monti, One Eighty and Lime Gala, while large-scale private estates include Felicity Garden, Shau Kei Wan Plaza, Shau Kei Wan Centre and Perfect Mount Garden.