Parking space-size flats to be the new norm, as affordability eludes Hong Kong’s first-time buyers
Nano flats, or apartments each smaller than 200 square feet, will be the new norm in Hong Kong as 2,100 of such complexes are on drawing boards through 2020.
At least 2,100 nano flats are expected to be completed between now and 2020 in Hong Kong, to lure more young homebuyers into getting their first foot on the property ladder in the world’s most expensive housing market.
The new supply of the flats (classed as saleable areas below 200 square feet in size, or 18 square meters) will amount to an average of 510 units per year between 2017 and 2020, up from 151 units per year between 2014 and 2016, according to a latest report by global property agency, JLL.
The majority will be located in the New Territories, well away from the city’s core business districts.
Unlike in many western cities such as London and Sydney, Hong Kong does not have legal requirements on the minimum size of a flat. And skyrocketing housing prices have pushed first-time buyers into opting for these fast-emerging, often luxurious mini units.
The demand has seen more local developers rushing to create smaller properties, which have lower sale prices but higher average prices per sq ft.
