The search for hidden gems continues with A Kung Ngam, a little known backwater near Shau Kei Wan that is hitting the big time.
It’s no big secret that residential property gems are almost impossible to come by on Hong Kong island, but we believe that they have come across something that might make people turn their heads.
A Kung Ngam is a little known area in Shau Kei Wan near the Aldrich Bay Promenade. It is a village on the waterfront that currently has a fish market, several temples and is host to the Hong Kong Museum of Coastal Defence.
It looks quite a bit like Lei Yue Mun, with its boats, dockyards, industrial buildings, and temples, but you can be sure that is going to change. The Hong Kong Sanatorium & Hospital, which treats Hong Kong’s rich and famous, is set to open a new complex in the area in approximately 2020. That fact alone should alert investors to a new opportunity - it’s time to wake up and smell the potential.
Currently, industrial building rents are around HK$10 per sqft, which is surprisingly low in Hong Kong, and it might be reasonable to ask why this area is currently being ignored? This in Hong Kong of all places, where golden opportunities are never (or rarely) missed.
The signature spots of A Kung Ngam
Firstly, the area has no access to the MTR (the closest stop being Shau Kei Wan) and in general has very low accessibility. Secondly, there aren’t any single-owned buildings in the area so it will be hard to regenerate the district without some kind of assistance from the government.
Still, there is precedent here when looking at similar areas in Hong Kong. Yau Tong, for example, was previously a no go area for potential investors and residents, with dockyards and industrial estates dominating the landscape. Then came the residential developments, including Canaryside, Ocean One and The Spectacle, and recent buyers of plots in the area include Wheelock for HK$6.39 billion and Minmetals, with a HK$$4 billion purchase. The area is now a well-known residential area.
Similarly, the West Kowloon district was nothing more but a wasteland before the announcement of ICC, the Hong Kong-Guangzhou rail link, and the development of a whole new cultural district. Could it be that the Hong Kong Sanatorium & Hospital complex will have the same galvanizing effect? Keep your eyes open and ears close to the ground.
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