24/7 taxi access is coming to Park Island
In my last post Tung Wan Beach to be widened, I reported the good news that the main beach on Ma Wan, used by Park Island residents, is going to be significantly widened with plans for an even wider flat sandy beach.
I now have some further good news to report, this time regarding transport on to Ma Wan!
The Tseun Wan District Counsel has just recommended and approved a further easing of transport restrictions to Park Island for taxis. I can confirm that the recommendation was also approved by Hong Kong's Transport Department.
It appears that the transport department has approved two major changes.
First, taxi access will be opened up to Park Island for weekends as well as weekdays. The hours of access will be extended such that taxi access will move towards an eventual 24/7 schedule.
I think the relaxed restrictions will be welcomed by mothers with kids and prams, and late night revellers returning from Central alike.
Secondly, the taxi operation area will also be extended from the roundabout to parts of Fong Yuen Road and Pak Lam Road and the entire Ma Wan Rural Committee Road. So whereas before the taxi had to stop at the roundabout the beginning of Park Island (which I always thought made no sense!) it will now be able to drive around the entire island, dropping residents off whenever they please. (Again, I am sure very welcomed by mothers with kids and prams, and late night revellers returning from Central alike!).
These moves relaxing traffic restrictions further signify another step in the right direction towards eventual permission for private car access to Park Island (hopefully only allowed for Park Island residents). That is the last thing in my mind, which would truly make Park Island the ultimate place to live in Hong Kong.
People often email me when I report a development and ask "how will the change affect property prices on Park Island". So, for those who are interested in my views on this, my feeling is that these gradual restrictions will lead to a 1-3% increase in value for Park Island apartments. Increased access is of course always welcomed, and its possible that higher income earners, who are less prices sensitive and who are willing to pay extra for the ease of taxis rather than the ferry or the bus, will be more inclined to rent or buy on Park Island knowing that Park Island has 24/7 taxi access.
Some people might also place value on the fact that this development is a confirmation that in the future the Transport Department will, eventually, allow private car access to Park Island, which might lead to an increased willingness to pay more for an apartment now. Of course the closer we get to the "reality" of private car access to Park Island, the more prices will rise in anticipation of this (much like the effect of an escalator or MTR station being built near an estate on Hong Kong island). So the earlier one buys before this effect becomes "priced in" the more one would benefit from the consequent price increase once there is confirmation and certainty of this development.
Great News for taxis! However I am a bit concerned about them having access to the entire Island. I assume they will only be allowed on the same roads than the buses...however I am afraid this will increase noise/pollution and potentially accidents. I think buses are driving WAY TOO FAST on the island already. I don't really want to see crazy taxi drivers speeding there as well.
ReplyDeleteIt is great to have taxi 24/7, but I prefer they just stay at the roundabout instead driving around everywhere.I would say most the taxi drivers are driving too fast.
ReplyDeleteI think a lot more is coming. I had a few estate agents who called me to try and make me sell my flat. They told me they'd be willing to buy it for $7M minimum! I checked on different websites for property valuations and it's currently priced at about $6.35M right now. Why would they need to buy it from me now at a premium? I assume they knew about the Beach extension, the Taxis 24/7 .... and maybe something else like Private Cars? MTR? I was thinking something big that could allow them to buy it from me at $7M and sell it in a few months or in a year at $8M
ReplyDeleteGood news about taxi access! The conjecture it about leading to eventual relaxation on private cars (even to PI residents only) may be far off. Obviously it would increase convenience but I worry that the Transport Dept. relaxing taxi restriction may be the concession they make for steadfastly not allowing private cars?
ReplyDeleteArggg! This is good news but its bad news for me as I am currently looking to buy. There are very few of the larger apartments that I like for sale right now as supply is tight due to noone wanting to sell. Things like this are then only used by sellers to push up the price a bit more just like the expanded beach plans. Its great for you guys who are already invested but frustrating for a potential buyer like me. I know its probably still a good time to buy but not nice to be dealing with the asking prices as they are right now. I do think long term prices will be alot higher having considered many places in HK and I feel Park Island is one of the best value investments right now. If anyone has a large sized apartment or penthouse apartment on Park Island for sale please post it up and I will contact you.
ReplyDeleteI just sold my place on HK Island with a view to buying on Park Island. I have found this blog very helpful.
ReplyDeleteI had a 1 bedroom place in Bella Vista 751 square foot in the Mid Levels which I bought for just under 4 million and sold it last week for 7.3 million. I'm hoping on getting a 1000 square foot apartment in the 7.5-8 million range. I am confident of finding something as I think some people who bought for real cheap on Park Island will be willing to sell.
Can't wait to join you guys already living there.
Dan - nice move! I think you have done the right thing (both from an investment perspective and from a lifestyle perspective). You will see how nice it is to have all that extra space, and how much more peaceful life is on Park Island. Drop down to Romas on the beach and go introduce yourself to some of the locals if you have not already done so.
ReplyDeleteBack page (business)of SCMP today talking about some ex-pat bankers moving out of their mid level homes to North Point and DB for space and lifestyle. Not sure how North Point compared with the likes of DB or Park Island but surely would be a big step down from mid levels in terms of living conditions (noise, pollution, traffic, traffic jam). Difficult to imagine them getting used to "ding ding" or jam packed MTR. North Point do have more selection of local Chinese eateries if that is what they are looking for.
ReplyDeleteThanks Anon - could you post up that article here? I'm in Macau on a biz trip and don't have access to SCMP online.
DeleteI agree though, more expats are definately moving to locations away from typical expat locations. Park Island, Discovery Bay and Sai Kung all seem to be experiencing a surge of populatity among expats, both to rent and to buy.
I think part of this is that expats to not subscribe to "local Hong Kong" thinking of what is a "good area" (which in HK is often driven by both historical factors, eg "that's an area where "poor people" used to live, or "such and such an area will help you child get into a more prestigious school", etc.
Rather, expats take a more practical view, without being as influnced of as biassed by "local factors". Expats consider factors such as "where is the air quality in HK better?", "where is the best value property for money in Hong Kong", "which apartments have the largest bedrooms and living areas in HK", "which HK estates have the best facilities", "which areas in HK are the quietest at night", etc.
I feel these factors will result in strong long term growth for places like Park Island, and that what will happen eventually is that "locals" will catch on to "expat trends" which will in turn further push up demand and prices on places like Park Island, DB, Sai Kung.
A really good example is schooling on Park Island. I the past some local Park Islanders woud live on the island for the facilities and openness but yet send their kids to schools off the island. Meanwhile, expats on Park Island are increasingly sending their kids to the local school on Park Island. Now, locals seeing this, are increasingly considering doing the same, as "if expats are doing it, it must be good".
This so true about Park Island. I am pretty sure more bankers and lawyers will be moving in. The place is just too good a deal for this not to happen. Right now its younger expats who are more open minded who have made the move over but I am sure older and more established expats are also taking up this trend. Here is the article in the SCMP.
ReplyDeletePublished on South China Morning Post (http://www.scmp.com)
Hong Kong banks and bankers seek cheaper rents
Business›Banking & Finance.MR. SHANGKONG
.George Chen george.chen@scmp.com
.As Hong Kong's rents surge, Quarry Bay is perhaps the new Central for the banking world, and Discovery Bay is the new Repulse Bay for some bankers
.Banks and bankers are on the move in Hong Kong, searching for less expensive corporate and personal digs as the city's rents head ever higher.
Royal Bank of Scotland (RBS) recently moved more of its people from the Cheung Kong Center in Central - a towering symbol of power in the city - and dispersed them to cheaper rental premises in places such as Quarry Bay in the Eastern District of Hong Kong Island.
As of August, net rentals in Central averaged HK$104 per square foot, compared with HK$56 to HK$57 per sqft in Causeway Bay, and HK$40.50 per sqft in Quarry Bay.
Rents in Central have slipped 10 per cent on average below last year's levels, but financial institutions around the world still are feeling the squeeze as their business outlook remains weak to bleak.
Loss-making RBS, now controlled by the British government, is no longer among the top 20 financial industry tenants in Hong Kong, having vacated a total of seven floors at Cheung Kong Center, according to a recent research report by Credit Suisse.
UBS, too, is shopping for lower-cost space. The Swiss bank sprawls over several floors at Two IFC in Central, the second-tallest building in Hong Kong behind the International Commerce Centre (ICC) in West Kowloon. But its lease expires in the middle of next year. My contacts at UBS say the bank considered relocating to ICC, where the likes of global banks Morgan Stanley and Credit Suisse decided in 2007 to move their regional head offices. But sufficient space wasn't available.
In a domino effect, some bankers who have survived this year's rounds of layoffs also are busy house-hunting.
Traditionally, many senior and mid-rank financial executives preferred to ensconce themselves on The Peak or in Repulse Bay. But faced with the prospect of lower salaries, bonuses and other non-cash benefits including the increasingly rare housing allowance, they are slicing personal overheads.
Before the 2008 financial crisis, some managing director-level bankers in Hong Kong were still getting monthly housing allowances of HK$150,000 or more on top of their multi-million dollar annual base salaries. Such housing benefits now are either gone or partly integrated into their salaries.
"It basically means a pay cut because you won't get the full amount of your housing after it is counted into your salary," explains an expatriate banker, adding that some of his friends now get only half or less of their original housing allowances.
That may explain why those who used to live in the Mid-Levels district are now exploring places in North Point. And Discovery Bay, where there is more space for the spend, is looking good as a kind of poor-man's Repulse Bay, some property agents suggest.
When Morgan Stanley and others first decided to move their offices to ICC, I heard that some staff disliked the commute to Kowloon so much they quit.
Then again, the job market was not as bad then as it is today.
Wonder if all of those Central lovers will dare to quit if the bosses says they are moving your office to Kowloon or a more remote place? I doubt it.
http://www.scmp.com/business/banking-finance/article/1061143/hong-kong-banks-and-bankers-seek-cheaper-rents
Dan and the other guy looking to buy, I am in the market for a roof top penthouse apartment on Park Island. Apart from nothing being for sale rightnow, or very little at least in this catgory here is another issue. Banks will value these at around 17 to 19 mil. They base this on average square foot pricing of historical sales. But sellers on the other hand are asking 25 million. So who makes up the shortfall? We alrady need to put down a large deposit, and not all of us are mainlanders cashed up to buy all in cash.
ReplyDeletejust wait for one sale for these apartments and the valuation will adjust upwards automatically
Deletei own one of these places and frankly i would also not sell for anything less than 25m
Sale of these apartments are moving quicker now that people start realising it is still reasonable considering the view and quality. Bank valuation would move up accordingly.
DeleteAnon, you need not be too disheartened. SHK sold 65 units at Phase 6 Anacapri. These are all large units and some with very good spec especially duplexes (incl large roof space). They went for just under $18m when it was sold in March this year. Allowing for a 20% appreciation, these will be around $21.5m. Maybe you can approach agents to see if any buyers wanting to sell. The problem now is that they are still subject to Special Stamp Duty (SSD) at 15%. Those duplex penthouse unit are an absolute gem. Speaking with agents, some owners of Anacapri units would be willing to sell - so even if you don't get the duplexes or ground floor with private swimming pool, there are still some very nice units with large balcony.
ReplyDeleteWe bought a little over a year ago. Very happy with the decision to live on Park Island. I personally feel prices are still quite cheap overall and that they will move up quite a lot more given the quality and price compared to much lesser quality apartments in other better known parts of Hong Kong.
ReplyDeleteHi All,
ReplyDeleteRegretfully I have to sell my penthouse due to finance. It is one of the front facing ones near the pier. Any firm buyers please leave your email address I will contact you. Please only contact if you are serious. Direct sale only no agents please.
Many Thanks.
Anon, are you willing to sell under 20m? When I recently looked, from the few penthouse owners that were willing to mention a price 20m was a commonly cited bottom price. Banks are only willing to lend 18m based on my enquiries, so would you consider a bank val price? Also what size do you have and is it with rooftop or balcony?
ReplyDeleteHi There,
DeleteI am willing to sell under 20M and have already posted my ad on asiaxpat hk. My unit has a balcony. Please check this out on there and leave message to me on the site. Thanks again for your interest.
Regards.
I'm OK with you posting up the ad here, so if you want to put up either the details or the link to the advert on Asiaxpat, please feel free to do that. If you send me photos I might also put them up on my blog.
DeleteThanks! My apartment is one of the phase 2, 1523sft top floor unit, in the front row. It has a large rooftop (sorry for the confusion...I did say it was balcony in the previous reply). My price is $18.8 Million. You can see my ad in asiaxpat.
Deletehttp://hongkong.asiaxpat.com/property/direct-owner-apartments-for-sale/717550.asp
Cheers :)
Welcome.
DeletePS, can you add here, is the rooftop accessible by an internal or external staircase?
You should get quite a lot of interest at this price I think. Do feel free to keep us posted on how it goes.
Thats a pretty fair price and close to bank val. Is your ocean facing? What is the reason for selling? You must be well up and prices are still rising no? It wouldnt suprise me if these get to 30m in a few years if things keep going like this and mainlanders start taking an interest in Park Island.
ReplyDeleteYes it is facing the ocean, has internal stair and from the roof you can even see the playground at the back, basically 360 degrees' view - magnificent. Every room has its own FULL SEAVIEW, stunning indeed. I really love this apartment but we have to sell because we urgently needs money. This is why I want to sell it close to bank evaluation. I know I will regret selling at this point but I also know that is the market value right now. Hope this help and interested parties please email me on
ReplyDeleteferry2006@gmail.com
Cheers.
One more thing is that the transaction for this type of flats are very rare so altough "I guessed" this price to be easy for me to sell it may not necessarily be accurate as there isn't others same ones sold to compare. This is afterall a "special unit"
ReplyDeleteThere is always risk in selling as I may very well not be able to buy it back in the future. From the look of it, there should be a group/s of people are actively seeking to improve this land to make it the perfect place to live in HK. Which may very well involve legal professionals who knows what to and how to fight for. That is why all these amazing things are happening......... Would you agree?
Im from overseas and we just moved into Park Island so I am not an expert. I do think though that the penthouses are very good value compared to other parts of HK. Amazing views from there, nice layout, great quality.
ReplyDeleteTo the seller, I wonder how does the bank do the valuation? Could it be that there has not been a sale for a while of the penthouse, so the bank value is now still quite low or behind? So then, when there is the next sale, the bank value of penthouses on park island will go up quite a lot?
Big meeting to vote and decide on the transport proposal by PITCL this coming Sunday 11 Nov. Go and express your views and vote for the best option.
ReplyDelete