Small doesn’t come cheap - Hong Kong’s nano flats cost 9 per cent more in square footage
The city’s supply of tiny flats are now more expensive than larger homes on a per square foot basis, as investors snap up homes requiring lower lump sum down payments
Hong Kong’s second-hand tiny flats are 9 per cent more expensive than larger ones on a per square foot basis, as record-high home prices and government cooling measures have created a mismatch between supply and demand.
The average per square foot price of second-hand flats smaller than 400 square feet (37 square metres) transacted this year hit HK$13,836 (US$1,768) in 50 major housing estates, 9.3 per cent higher than the HK$12,654 of larger homes, data from the Land Registry compiled by the South China Morning Post showed.
The per square foot price of tiny flats is 9.8 per cent higher than that of flats of 400 to 800 sq ft, and 4.1 per cent higher than that of flats larger than 800 sq ft.
This reflects an unintended effect of the government’s cooling measures to rein in the world’s least affordable housing market, which is the distorted demand and supply relation in the secondary market, analysts said.
Watch: Why is Hong Kong housing so expensive?
