Mong Kok project co-developed by Urban Renewal Authority all but sells out amid home price rebound fears

L Living 23 has been developed by Yau Lee Holdings and Urban Renewal Authority
Project’s average price of HK$20,500 per square foot is below that of some new projects in the neighbourhood

Hong Kong property

Pearl Liu

Published: 7:15pm, 16 May 2021

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A total of 108 units out of the 117 on offer at the L Living 23 project in Mong Kok were sold on Sunday.

The project has been developed by Hong Kong company Yau Lee Holdings and the Urban Renewal Authority. The 27-storey building is located about a 10-minute walk from the Mong Kok MTR station.

“It is not a surprise that the sales at L Living 23 are this good. Potential buyers are a bit worried that home prices will rebound too fast and they will miss the chance to acquire a cheaper home,” said Derek Chan, head of research at Ricacorp Properties.

Hong Kong’s lived-in home prices advanced by 0.8 per cent in March to 388.3, a 20-month high, on a price index for lived-in homes compiled by the Rating and Valuation Department. This came as buyers once again became bullish about the outlook for the city’s property market. Historically high home prices could be seen as early as mid this year, while they could jump by 10 per cent for the whole of 2021, according to Ricacorp.

“People flock to projects with attractive prices,” Chan said. About 2,500 people – 21 bids for each available flat – put down money to register their interest in the units, which range in size from 276 sq ft to 465 sq ft. They are priced between HK$4.65 million (US$598,576) and HK$12.62 million. This translates to an average price of HK$20,500 per square foot, below the average prices of some new projects in the neighbourhood.

L Living 23 in Mong Kok. Photo: Edmond So

Sino-Ocean Group priced 30 units at its Uptify project in Mong Kok at HK$22,544 per square foot in April, while One Soho, which has been jointly developed by Sino Land, Chuang’s Consortium and the Urban Renewal Authority, were offered at HK$21,538 per sq ft.

Hong Kong has now seen a couple of weekends of brisk property sales. Three out of four units were sold at South Land, which has been jointly developed by Road King, Ping An Insurance and Hong Kong’s subway operator, MTR Corporation, on the Wong Chuk Hang subway station on Saturday. Two previous rounds of sales at the project saw 100 per cent sales, while about 90 per cent of the units on offer at Sun Hung Kai Properties’ Regency Bay II in Tuen Mun were sold on April 24.

The strong sales over the past month underscore a rise in sentiment following stronger-than-expected economic growth in Hong Kong. The city’s economy expanded 7.9 per cent in the first three months of this year, according to finalised data released on Friday. The data confirmed Hong Kong’s quickest quarterly growth pace in 11 years, which beat economists’ forecasts while ending a six-quarter losing streak. Unemployment too seems to have come off a peak of 7.2 per cent in February this year to 6.8 per cent in March.

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“Over the next two to three years, residential property prices should remain resilient due to a structural supply shortage,” rating agency S&P forecast in a report released this month.

L Living 23 will have offers 142 flats in total. The 25 units excluded from Sunday’s sale have been kept aside by the Urban Renewal Authority for the Hong Kong government’s “flat-for-flat” scheme. The 10-year-old scheme gives those displaced from old buildings the choice of a flat in new developments or nearby. Those affected can also opt for financial compensation. The scheme’s aim is to preserve long-standing communities.

This article appeared in the South China Morning Post print edition as: Mong Kok flats snapped up amid price rise worry

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