Is Kwai Tsing the new home for Hong Kong's upper class?

It’s one of the top five fastest growing districts in terms of affluence.

Despite a marked lack in new home supply, Kwai Tsing ranks amongst the top five fastest growing districts in terms of affluence in Hong Kong, according to JLL’s residential sales market monitor.

The report also identified Yau Tsim Mong, Yuen Long, Islands and Sai Kung as amongst the districts wherein the median monthly household income of economically active households grew in the range of 35.7% to 40% from 2012 to 2017.

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Of the five districts, Kwai Tsing is the only district that has witnessed almost zero new completions over the last five years and is expected to house only 1,000 units coming on stream by 2023.  Nonetheless, strong income growth from residents in the area is poised to brighten the residential market outlook for the district and streamline the delivery of new home supply.

“This suggests that such an income growth is not driven by new supply drawing in more affluent families from other districts. Rather, it was mostly an organic uplift in local affordability, which could be a potential demand driver for upcoming supply in Kwai Tsing,” said JLL Regional Director of Capital Markets Henry Mok.

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“Besides Kwai Tsing, some other districts whose future developments may benefit from a local demand base with higher affordability are Kwun Tong, Wong Tai Sin and Southern district. These districts have seen a combination of less than 1,000 units of new supply and over 25% income growth among economically active households over the past five years,” added JLL Associate Director of Research Ingrid Cheh.

Photo from Ralf Roletschek - Own work, CC BY 3.0