Hong Kong property bubble: HK$11 million for a home in the boonies

The developer Sun Hung Kai Properties is hoping to fetch an average of HK$5,200 per square foot, about 18 percent higher than secondary transaction prices nearby. The really big dollar signs are flashing above the special units, such as the 39th floor apartment that is on offer at HK$11 million. This is close to the amount reached at the height of 1997's property market frenzy for the same neighborhood. 

But the prices wouldn't be such a shock if the neighborhood in question wasn't located in the sticks. The Yuen Long address of YOHO Midtown connotes neither prestige nor convenience. Even with the West Rail running adjacent to the complex, commuters would need an average of 40-50 minutes to travel between YOHO Midtown and Hong Kong's commerical district, Central.

Sun Hung Kai Properties will launch the first 50 apartments of the 1,890 home YOHO Midtown tomorrow and expects to sell all the initial target of 700 flats by Sunday, reaping a total of HK$3 billion. Most of the initial buyers are likely to be investors.

See more at YOHO Midtown's Facebook page.