New infrastructure could cushion price falls in Tseung Kwan O
Improved transportation network set to enhance district connectivity
HONG KONG, 7 December 2022 – The residential market of Tseung Kwan O (TKO) is expected to benefit from the opening of the Tseung Kwan O-Lam Tin Tunnel and Cross Bay Link on 11 December, according to JLL's Hong Kong Residential Sales Market Monitor released today. The improving transportation network and enhanced connectivity will cushion the price fall in the market.
Connecting TKO with Kwun Tong and the Eastern Harbour Crossing, the tunnel and Cross Bay link will shorten the travel time by car between Lohas Park and Kwun Tong town center by 20 minutes, according to the Transport and Logistics Bureau. Residents in other parts of the district will also enjoy shortened travel time, as the new tunnel will divert an estimated 30% to 40% of traffic away from the TKO Tunnel, which is seriously congested during peak hours. Based on the 2021 Population Census, 34% and 29% of the working population in Lohas Park work on Hong Kong Island and in Kowloon, respectively, and these two projects will bring material benefits to the residents' daily commutes.
Looking forward, the connectivity of TKO with Hong Kong Island and Kowloon will be further enhanced. In the latest Policy Address, the development of TKO-Yau Tong Tunnel and TKO Line Southern Extension would be taken forward.
Norry Lee, Senior Director of Projects Strategy and Consultancy Department at JLL, said: "TKO is one of the most popular residential districts and also one of the top three largest residential districts in the city. These new infrastructures will not only improve the transport network in the area but also facilitate the development of TKO Area 137, which will provide more commercial spaces, community facilities, and residential units in TKO. Upon completion, these developments are expected to substantially boost residential demand in the area and they could also cushion the price fall in the district in the down cycle."
Nelson Wong, Executive Director of Research at JLL in Hong Kong, said: "Communities in TKO will be better served by constantly improving transport infrastructure and continue to attract home buyers. Lohas Park has been sought after by young and higher income families. In Lohas Park, the median age is 38.4 years and the median monthly income of working population is HKD 30,000, compared to 46.3 years and HKD 18,000 in the whole territory of Hong Kong. This kind of population could support the property market amidst the headwinds."
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