The Supply of Residental Flats Increases Ten Times in West Kowloon Reclamation Area

In the coming five years, the west knowloon reclamation area will provide about 38000 residental flats and become one of important transportation hub in Knowloon. Picture: Copied from SCMP

The International Property Consultancy, XXX, predicts that in the coming five years, 37,561 residental flats in three reclamation areas of West Kowloon will be supplied in the market, the supply which is ten times more than the one in the past five years. Thus it is believed that the rise of property price in those areas will lag behind the general property price.

Based on the study on the property supply in the West Kownloon reclamation, the consultant highlights that as the supply of lands for residential use is scarce and the redevelopment constuction is slow, only very few residental flats, 3,690, are produced currently. Despite this, it is believed that the flat supply would dramatically surge after the development and construction in the West Knowloon Reclamation area is completed.

The director of the XXX firm, Mr To Lui Hung, predicts that as the government expects the West Kowloon Reclamation area will shelter 180,400 population, it is believed that the future residental flats would be classified into different categories in catering for different income groups. Since the current development projects are still in the beginning stage, it is believed that the sale of new residental flats at a first round could not start before 2002/2003. Though the supply is expected high between 2003 and 2005, the actual supply would depend on economic factors and the provision of infrastructure of the coming two years. Also it is subjected to the decision of developers who would adjust the supply of residential flats in accordance with the change in market demand.

He thinks that in recent years, the economic growth is speeding up, some holding high-ranked positions will intially enjoy the fruit of economic growth. It is believed that in the middle of next year, the whole property market would be revitalized with an anticipation of 5% growth of property price when more people can share the fruits of economic growth and enjoy a pay increase.

West Kowloon Reclamation development was proposed in 1983 and later became one of proposed developments in Territorial Development strategy. As, the largest scale of reclamation in the Hong Kong History, it costed $120 billion. The scale of reclamation is extending from Tsim Sha Tui to Mei Fo onshore area, providing 3,660 million square feet of lands. The reclamation area has been divided for different land uses which include Industrial use, residential use, commercial use, hotel, GIC and transportation hub such as airport express, olympic station and West Kowloon Yen Chow station. Apart from two large-scale development projects, Kowloon station and Olympic station, there will be completed another 11 residential projects which is to provide 37,560 flats in the coming five years between 2000 and 2005,

The article is translated from the original one published in Hong Kong Economic Journal