Flats getting smaller as home prices soar, but people have better shot at buying own home
By Joyce Lim, Hong Kong Correspondent, The Sunday Times, 14 May 2017
As property prices spiral upwards in Hong Kong, the race is on to build smaller and smaller homes.
Dubbed "nano" flats by the Hong Kong media, these homes are less than 200 sq ft, cost about HK$4 million (S$725,000) on average, and are popular with young couples.
In comparison, a so-called shoebox apartment in Singapore is usually about 400 sq ft and costs around $500,000.
Last year, 206 nano flats were completed in Hong Kong, up from 81 in 2013, reported the South China Morning Post, citing government figures.
Such flats made up a tiny 1.4 per cent of the 15,595 new homes built in Hong Kong last year. This year, about 5,900 small homes - less than 430 sq ft in size - are expected to be built, making up 41 per cent of all new flats, property consultancy JLL said.
These small flats have made it possible for young couples to own homes in a central area, such as Wan Chai on Hong Kong Island.
However, analysts warned that an oversupply of such flats is likely to disrupt the market in the long run.
By Joyce Lim, Hong Kong Correspondent, The Sunday Times, 14 May 2017
As property prices spiral upwards in Hong Kong, the race is on to build smaller and smaller homes.
Dubbed "nano" flats by the Hong Kong media, these homes are less than 200 sq ft, cost about HK$4 million (S$725,000) on average, and are popular with young couples.
In comparison, a so-called shoebox apartment in Singapore is usually about 400 sq ft and costs around $500,000.
Last year, 206 nano flats were completed in Hong Kong, up from 81 in 2013, reported the South China Morning Post, citing government figures.
Such flats made up a tiny 1.4 per cent of the 15,595 new homes built in Hong Kong last year. This year, about 5,900 small homes - less than 430 sq ft in size - are expected to be built, making up 41 per cent of all new flats, property consultancy JLL said.
These small flats have made it possible for young couples to own homes in a central area, such as Wan Chai on Hong Kong Island.
However, analysts warned that an oversupply of such flats is likely to disrupt the market in the long run.
"In the future, when these buyers try to trade up, they will not be able to sell them because of market changes. People may have more money and want bigger flats, so nano flats may not be suitable," said Mr David Ji, director and head of research and consultancy (Greater China) at Knight Frank.
Hong Kong has pipped London as the top market for luxury homes, setting records with four deals hitting the US$100 million (S$140 million) mark last year. However, there appears to be no limit to how small a flat can get.
According to Hong Kong Building Department records, the smallest flat in Hong Kong is a 61.4 sq ft flat. The flat comes with no bathroom or kitchen space.
That would make it smaller than a carpark space in Singapore, which has to be at least 124 sq ft, according to Land Transport Authority rules.









