Inkstone
    Mar
    21
    2018
    Mar
    21
    2018
    Shoebox home in Hong Kong sold for $1 million
    Shoebox home in Hong Kong sold for $1 million
    SOCIETY

    Shoebox home in Hong Kong sold for $1 million

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    by
    Peggy Sito and Sandy Li
    Peggy Sito and
    Sandy Li
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    Got one million dollars? Then you can afford a 209-sq ft apartment in Hong Kong.

    That’s smaller than the area you’d get if you combined two parking spaces.

    An apartment in the city’s upscale Pok Fu Lam neighborhood sold for $1 million this week, according to its developer.

    That price translates into $4,800 per sq ft – a record price for Hong Kong’s so-called micro-apartments. 

    The studio flat consists of an open area that serves as living room, bedroom and dining hall, plus a corner bathroom. 

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    Another 310-sq ft apartment in the same building, constructed by Kowloon Development, was recently sold for $1.4 million.

    Construction site of the Pok Fu Lam apartment building.
    Construction site of the Pok Fu Lam apartment building. Photo: Sam Tsang

    Hong Kong has been the world’s least affordable property market for eight years in a row, according to research group Demographia.

    In 2017, a typical apartment in the city cost a staggering 19.4 times the median household income, Demographia’s annual International Housing Affordability Survey showed. 

    Group 5
    Not many Hongkongers can afford a proper apartment any more
    -
    Thomas Lam, Knight Frank consultancy

    By January, home prices in the city had been rising for 15 months in a row, the longest stretch of gains since 1993.

    Skyrocketing property prices have led to a boom in tiny apartments — also called nano flats, capsule homes or shoebox homes.

    Many Hongkongers can only afford to live in subdivided apartments like this.
    Many Hongkongers can only afford to live in subdivided apartments like this. Photo: Edward Wong

    At least 2,100 apartments under 200 sq ft are expected to be completed in Hong Kong between 2017 and 2020 — about 510 units every year, according to property consultant JLL.

    That is five times the annual pace between 2014 and 2016, JLL said.

    Take a look at a similar 263-sq ft apartment, developed by Henderson Land:

    Thomas Lam, senior director at Knight Frank consultancy, said the frenzy for micro-apartments would continue due to ever-rising housing prices. 

    “These tiny studios cannot even accommdate a small family,” Leung said. “But not many Hongkongers can afford a proper apartment any more.”

    The skyrocketing home price in Hong Kong.
    The skyrocketing home price in Hong Kong.

    A new record for Hong Kong’s smallest apartment is expected to be set in September when Chun Wo Property finishes constructing several 128-sq ft units with a design inspired by university dormitories.

    The developer said it is aiming to attract young Hongkongers buying their first property.

    PEGGY SITO
    PEGGY SITO
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    Peggy Sito is a contributor to Inkstone. She is the South China Morning Post's property editor.

    SANDY LI
    COLUMNIST
    SANDY LI
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    Sandy Li is a contributor to Inkstone. She covers the property market for the South China Morning Post.

    PEGGY SITO
    PEGGY SITO
    arrow rightarrow right
    Peggy Sito is a contributor to Inkstone. She is the South China Morning Post's property editor.

    SANDY LI
    COLUMNIST
    SANDY LI
    arrow rightarrow right
    Sandy Li is a contributor to Inkstone. She covers the property market for the South China Morning Post.

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