In the most expensive housing market on earth, demand for micro-apartments is on the rise

Sky-high prices and smaller families have buyers snapping up homes smaller than 300 sf

National /
Aug.August 13, 2018 09:30 AM

Hong Kong micro apartments (Credit: iStock)

Rising home prices in Hong Kong have buyers turning to tiny apartments.

The world’s least-affordable housing market saw transaction volumes for residential units no bigger than 300 square feet jump 52 percent during the first eight months of the year compared to the same time in 2017, according to data from Picacorp Properties cited by Bloomberg.

Those 300-square-foot spaces are smaller than two parking spaces, and now make up 12.4 percent of total apartment sales in Hong Kong, up from 9.3 percent last year.

“The rise in property prices has made it difficult for people with less purchasing power to buy a home,” said Buggle Lau, chief analyst at Midland Realty. “So potential home buyers look for low lump-sum prices rather than a low price-per-square foot.”

Home prices in Hong Kong climbed 14 percent this year, the Centaline Property Centa-City Leading Index shows.

Shrinking family sizes are also contributing to the rising popularity of tiny homes, according to Centaline Property senior research director Wong Leung-Sing.

“The number of one-person families in Hong Kong has been growing rapidly,” he said. “For those who live alone, why do they need that much space?”

Here in New York City, the minimum size of an apartment is 400 square feet. There are exceptions, though, such as Carmel Place on East 27th Street, which opened as the city’s first micro-unit apartment building in 2016. [Bloomberg] – Rich Bockmann


Related Articles

arrow_forward_ios
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Porch CEO Matt Ehrlichman (iStock)

Porch snaps up four startups for over $122M

Porch snaps up four startups for over $122M
Nir Meir Asks Court to Stop Eviction (Google Maps)

Nir Meir seeks to throw out Hamptons ejection suit

Nir Meir seeks to throw out Hamptons ejection suit
Robert Frank with 1021 Park Avenue and Ben Lambert with 28 Laight Street (Getty, Google Maps)

Who’s buying and selling Manhattan homes? Last month’s notable deals

Who’s buying and selling Manhattan homes? Last month’s notable deals
New Yorkers signed leases in record numbers last month. (Getty)

Manhattan, Brooklyn rental leasing hit 12-year high in December

Manhattan, Brooklyn rental leasing hit 12-year high in December
Damien Dwin of Lafayette Square Holding (Photos via Lafayette; iStock)

Sustainable housing is focus of Damien Dwin’s social justice effort

Sustainable housing is focus of Damien Dwin’s social justice effort
Mortgage applications reach pandemic peak

Mortgage applications reach pandemic peak

Mortgage applications reach pandemic peak
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...