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If anyone is mad enough to pay HK$69,000 per month to live on Lamma Island all I can say is they need "sectioning" - its also a case that the so called "Property Agents" have lost the plot, never mind the fact that the banks seem willing to extend ridiculous mortgages on Lamma Island properties without even a surveyors structural report, i.e., much of the electrical's, original plumbing work and condition of the concrete and metal bar are in a terrible condition on many properties built prior to 2000 - the repair costs alone when things go wrong are huge, as many can attest too.
However, in the final quarter of the year, rents are still increasing - one colleague in YSW, German by the way, has been handed a 65% rent increase, that's from a rent presently at HK$7,000 to HK$11,000 - no work done on the flat, it has not been sold, just price gouging - they told the Landlord to take a hike and will be leaving the Island, so more customers lost from the small bars and eateries on the Island.
My husband has decided that should our rent increase go above a certain level in the second quarter 2014, we'll be forced to move off Island to the "New Territories" where similar housing to Lamma is available currently at a lower price point - more importantly, these are not 'basic only' homes, but ones with decent Western style kitchen's and bathrooms - obviously, no ferry trips required, good transportation links and schools catering to non-locals all on hand, basically, with bills you can live comfortably on HK$10,000 expenditure - no dog shit to contend with either and fast broadband services too.
So there you go, you can live within a 1 hour journey time to Central, have decent views of Hills, no weekend tourists and live a very similar, if frugal lifestyle, to that on Lamma for a significantly lower price point, and in some instances, actually in a flat of upto 900 Sq Ft - China is also very close, thus opening up the prospect of crossing the boarder each day and working in Shenzhen - I'd like to say we'll miss the "community" that existed on Lamma, but the fact is, that seemed to have died a death by 2010 - until then, this was a great place to live, work and raise children. I cannot say that now having lived more than 20 years in HK, most of those on Lamma.
On the economics front, to those contemplating purchasing property on Lamma, at the ridiculous costs requested in our Property Agents, please do think again, US long term interest rates are rising and our dollar is linked to the US dollar - so no more cheap mortgages with low interests rates shortly - further, China has gone off the boil and both Malaysia and Indonesia are slipping into recession - so economically the picture is not rosy, particularly given what's occurring in Shanghai presently to boost its economy and competitiveness with HK - also think USA and Europe presently.
Locally, turnover in property has dropped drastically and the sky-high cost per feet has been declining since June - well according to the local Chinese property websites, so now does not seem a time to invest in over inflated property - for those who care to disagree, take a look at what's happened on Discovery Bay - hardly any transactions for months and only a handful of properties now for sale - checked it out personally last week and was shocked at how much Disco Bay Ferry now is!
For the price gougers, once costs drop on Hong Kong Island and your rich tenants bugger off to better quarters , what are you going to do then - particularly those now lumbered with mortgages of $9,000 and above on flats that are only 630 Sq ft in reality - expect a few foreclosures, as the reality is that the average flat on Lamma thats older than 10 years really is not worth HK$10-15,000 to rent, particularly when cheaper rentals are available for better quality properties in the NT's if people can be bothered to make the necessary inquiries - and when they do, like me and my husband, they'll come to their senses.
So, farewell Lamma, priced out by fools, but at least we get a better flat at a cheaper price point with a good school and good transport close by - no more preying on the ferry, particularly during typhoon season or inclement days!!!!!!
By the way, I'm referring to Yuen Long - but other NT areas offer the same village-type housing we are used to here, luckily the price gougers and stupid Property Agents have not ruined these places yet.
As for Park Island, husband cannot stand the thought of a ferry again - so thats sorted our choice out, still, if we are not gouged excessively early next year, we may remain for our daughters sake - but greed does seem endemic on our island presently, and as LG has indicated, it seems no cure is presently at hand - the shocking thing is that after SARs you could rent for $3,800, now same property rents are $12,000 and over - which is a 300% increase, which in reality is unsustainable in the longterm - just waiting for the crash now after the feeding frenzy.
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