Investor Buys South Bay Flat With Tenancy for HK$7.6 Million
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong's secondary home market remained active, with transactions showing both modest gains and losses for sellers. In the headline deal, an investor bought a high-floor unit at South Bay in Ap Lei Chau for HK$7.6 million with the lease intact, attracted by the area's yacht and tourism development prospects. The flat is currently rented at HK$18,500 a month, implying a yield of about 2.9%. Other deals cited included a village house in Sai Kung's Nam Wai Road sold at a book loss and a flat at Sunshine City in Ma On Shan that achieved a firm price level.
Key Points
- Centaline branch manager Chan Siu-tak said South Bay Tower 10 high-floor Flat D, measuring 463 square feet, was sold with tenancy for HK$7.6 million.
- The South Bay unit changed hands at HK$16,415 per square foot, and the buyer was described as an investor optimistic about nearby yacht tourism development.
- The flat is now leased for HK$18,500 per month, giving the purchaser an estimated gross rental return of about 2.9%.
- The previous owner bought the South Bay unit in 2010 for HK$7.52 million and made a paper profit of HK$80,000.
- Century 21 Qifeng said a whole village house on Nam Wai Road, Sai Kung, sold for HK$14.7 million at a HK$800,000 loss, while Sunshine City in Ma On Shan saw a 370-square-foot flat sell for HK$5.56 million.
Why It Matters
The transactions point to a selective resale market in which income-producing units can still attract investors even when capital gains are limited. For Hong Kong buyers and owners, the contrast between a tenanted urban flat, a loss-making village house and a firm-priced mass-market unit suggests pricing power now depends heavily on asset type, rental income and location-specific demand.