Investors are on standby for the next moneymaking opportunities.
According to Maybank Kim Eng, HK property prices and transaction volumes have a strong correlation with infrastructure development, especially Mass Transit Railway (MTR) development.
Most recent example is the South Island MTR Line, which helped prices around the South Horizon station jump 72% in less than five years, outperforming the overall HK market by 20%. Maybank Kim Eng lists all future MTR developments and their project details to help investors identify the next moneymaking opportunities:
Property prices will generally climb after the government confirms there’s a railway project in the area, and construction progress could provide catalysts as well. Also, property owners will tend to hold on to their properties in anticipation of a re-rating, which will ultimately limit secondary supply in the region — providing a further boost.
Property developers often use MTR developments as a selling point for their new projects. Relatively aggressive pricing and stronger sell-through rates will also push up secondary market prices in the area.
Once a new railway line starts running, the greater convenience will boost rental yields in the area, which in turn will attract higher investment demand thus providing further upside to property prices.
The Kwun Tong Line Extension (KTE) is 2.6km long and added the Ho Man Tin and Whampoa stations. It started running on 23 Oct 2016.
§ Estimated journey time from Whampoa (Kowloon) to Admiralty (HK Island) is 15 minutes, vs. 30 minutes via road transport.
§ Ho Man Tin station is the largest interchange station with floor area of 58,000 sqm. Passengers will in the future be able to interchange to the Shatin to Central Link that connects Eastern N.T. to HK Island.
§ Whampoa station, an underground station with two levels, is the new terminus of the KTE.
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