Property price news: RM9,076 per sq ft for a home is very attractive
Of course, this is not in Malaysia
Yes, it’s for a home and this is not for an office. The place is Hong Kong and the area for the project is in Yau Tong. I do not know exactly where this is but according to google, it’s administratively part of Kwun Tong which is the most densely populated district in Hong Kong. Means many people are staying there and definitely a super bustling area too. The typical size for this lowest RM9,076 per sq ft development is 210 sq ft to 718 sq ft. We look at the details below:
Article in thestandard.com.hk CK Asset has unveiled the first price list of its new project The Coast Line II in Yau Tong that offers at an average price of HK$14,997 per square foot after discounts – a seven-year low for a home in the urban area.
CK Asset highlighted that the cheapest units cost HK$2.9 million after discounts – the lowest-priced new homes in Kowloon in some four years.
The 132 flats at The Coast Line II’s first batch cost between HK$2.9 million and HK$11.14 million after discounts.
They comprise 22 studios and 43 one-bedroom, 52 two-bedroom and 15 three-bedroom apartments, with areas ranging from 210 to 718 sq ft. Article in thestandard.com.hk
When demand far exceeds supply, prices will do the talking
Most Hong Konger friends I have would talk about property. They talk about property in Hong Kong, they compare the property prices outside Hong Kong. They think most Malaysians are staying in units which are many times bigger than the ones they could afford. As you could see, typical sizes for the above is just 210 sq ft. If we compare to some affordable units which are usually at 850 sq ft in Kuala Lumpur, this 850 sq ft is still 4x bigger yeah.
Do not worry, there’s no way Malaysia property price will ever reach Hong Kong’s level
However, what is true is this. Inflation happens. Salary increments happen. Property prices move very slowly over many years. Cost of land increases. Cost of building materials increase. In the end, the prices of homes would have to reflect all these changes. There’s no way property prices in Malaysia will ever reach Hong Kong’s levels. Well, not within my lifetime anyway. We do have a choice. Stay further away. Else, government could change its redevelopment laws and help to build up more potential supply in the future. We will see what happens.
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One Response
Property prices in Malaysia are so low compared to Hong Kong, I don’t think they’ll ever catch up in my lifetime. Unless, of course, the government changes its redevelopment laws and builds more houses like crazy. Then maybe, just maybe, I’ll be able to afford a mansion in Kuala Lumpur before I die. But until then, I’m staying put in my humble abode.