Hong Kong’s property market has reinvented itself yet again following the fundamental work and lifestyle shifts of 2020, and larger homes, particularly those with outdoor areas, are moving fast. Discovery Bay’s wide-open spaces and bigger-than-average interiors make it popular, especially for families. Also a plus, people still aren’t compelled to pay HK$100,000 per square foot to buy a home in Discovery Bay, or HK$228 per square foot to rent (as was the case at 73 Mount Kellet Road in May last year).
With borders still closed, residential sales and leasing is defined by local investors and, most significantly, local upgraders looking to realign their homes with our new collective lifestyle. As working from home gains more traction (it’s also more cost effective for corporate occupiers as evidenced by the battered office sector) buyers and tenants alike are opting to upgrade their homes to accommodate the new normal, putting those B and C class flats and traditional luxury on everyone’s radar.
First-time buyers are making their way to Discovery Bay alongside upgraders looking to take advantage of quickly dwindling rental reductions and sales discounts. Though rents in Hong Kong have fallen 16% since late-2019, vacancy rates for larger flats have also fallen as local families are making the leap to COVID lifestyle homes.
Anything that ticks so-called COVID boxes is demanding a lot of attention from both upgraders and investors. Flats with up to four bedrooms, ample outdoor areas, interior space for studies, offices and family rooms, and walkability to restaurants, beaches, hiking trails and everyday conveniences are drawing the most interest. A good view helps.
Large flats that have been recently renovated to a high specification are getting even more attention. Upgraders are unwilling to wait and are looking to address lifestyle changes as soon as possible. Properties that families can move into immediately, with minimal work are demanding a premium.
Given that people are more commonly working from home it makes sense for them to get more bang for their buck by getting more space. What’s more, the mindset of a lot of purchasers and tenants has changed since the pandemic, without travel it makes sense to live the resort-type lifestyle that Discovery Bay has to offer.