Price Index

Index of South Horizons, HKU-HRPI and RVD

Interpretation of Property Price index

The price index manifests all factors influencing the property prices of South Horizons evenly. For instance, general market factors, improvement on transport network and facilities in the district and so on. In the model, the average RVD index of Class B, C, D is employed to represent the effect of the general market on the subject property, given the range of 513 to 1,338 sq. feet of saleable floor area in South Horizons. For comparison, the price index of South Horizons will be plotted along with the average RVD index and the University of Hong Kong Hong Kong Island Residential Price Index (HKU-HRPI). The interpretation of the price index can be drawn as below:
 

1. A general increasing trend since commencement of the index
   It can be noticed that there is a rising trend of the overall property market in general.The quantitative easing policy by the US, low interest environment, loose monetary and fiscal policies in the US and other positive economic factors are the possible attributes to this rising trend. Subject to the same economic conditions, the price index of the subject property, South Horizons, manifested an ascending tendency.
   
   
2. Consistent out-performance compared to the general property market
   Generally, the price index of South Horizons lies above the lines of HKU-HRPI and the RVD index. This implies a continuous out-performance of the capital return of South Horizons to that of both property markets of Hong Kong Island and the overall Hong Kong. The index of South Horizons is higher than that of HKU-HRPI and RVD approximately for 15% and 17% respectively. The largest differences between South Horizons and the other two indices were found in January 2017 for more than 30%. There are few possible factors for this out-performance:

   Factor 1: High accessibility

   Despite the outlying location at the western end of Ap Lei Chau, South Horizons enjoys high accessibility with MTR services, numerous bus routes and Kaito service between Ap Lei Chau and Aberdeen. The establishment of South Horizons MTR station, which started operating on 28th December 2016, has largely boosted the accessibility of the area. This can also explain the largest out-performance of the index of South Horizons in January 2017. With the provision of MTR service in the district, it takes only 9 minutes for residents to travel from South Horizons Station to Admiralty Station, meaning a less than 30 minutes commuting to the CBD. The improved transportation network increases the attractiveness of the property to buyers.

   Factor 2: Provision of sea view

   South Horizons is surrounded by the sea on three sides. It is only separated from the coast of Aberdeen Bay by a promenade with no other buildings in the middle. If the sea is not to be reclaimed and developed in the future, South Horizons enjoys a permanent sea view. Compared with other housing estates which are known for “seaview units”, such as Harbour View Garden in Tai Koo Shing, Laguna City Phase 4, and even part of Bel-Air, are not as close to the sea as South Horizons. Most of the sea-side residential development projects are built with parks or undeveloped land in between; whereas South Horizons is built along the sea, enjoying an uninterrupted sea view.