In my last trip to Hong Kong just weeks ago, I was wondering why were there so many Teslas in Hong Kong. My colleague told me that there were tax waivers for electric cars and Tesla was monopolising all the sales against all other brands. The tax waiver has ended, thus the sales for Tesla has stopped, totally. There were zero registrations of new Tesla cars since April 2017. Here’s the news in South China Morning Post. Among all electric cars in the market today, Tesla represents my top favourite. The car is HUGE and the design philosophy is by far better than the many odd-shaped electric cars today. It was HK$570,000 (RM312,500) with the tax waivers and now it costs HKD900,000. (RM493,400) Ex. rate as at 18 June 2017. Before everyone says that the buyers were crazy to buy such an expensive car, let’s understand that the property prices in Hong Kong is many more times the price. In other words, comparatively, it’s not really that expensive, SIZE wise too.
A newly launched apartment starts from 161 sq ft. It’s Henderson Land Development’s Seven Victory Avenue, Kowloon city. Take a look at the image. It’s similar sized as a Tesla. Here’s the full article in smh.com.au My manager asked if there’s space for a toilet. The answer is, of course. It’s a real home. Just that the size was made small enough to make it affordable. How much is affordable? It’s just US$500,000. (RM2.14 million) Small apartments (this kind of size) comprised 27 percent of all new homes launched in 2016. It is growing in popularity. As per the article, it should become 43 percent in 2018. (I wonder what’s the percentage for those affordable homes in Malaysia when compared to the overall market. Hopefully NAPIC can shed some lights in the near future) This is the government’s opinion about ever smaller sized homes. “At this stage the government leaves flexibility to the market so that developers can respond to the needs of the market appropriately,” said Terry Wong, a government spokesman. Another full article here in TheStar.
Would the apartments in Malaysia become this small in the future? Let’s just say it’s not easy to get everyone to accept this kind of size. Not for me,especially. Even when my kids are all grown up and I am staying with just my wife. Sorry lah… We are high-rise supporter but we are not small sized supporter. In Hong Kong, they have gotten used to 450 sq ft apartments for many years before these micro-apartments started. Remember, it was still very minority just a few years ago. For Malaysia, even for the KLCC area, until everyone is used to 450 sq ft homes for many years, they will not be accepting this micro-sized homes anytime soon. I have more friends staying further away and not more friends intending to move into the city centre. Anyway, one trend is for sure. Homes will get more expensive when land prices become ever higher. When we look at land prices within the KLCC area, it is getting ever higher. So, price will continue to squeeze the size. How soon is a question still. Happy following.
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written on 18 June 2017
Next suggested article: Buy smaller and then try to make bigger?