Hong Kong Apartment as Grand Prize in Vaccine Incentive

Posted on 15 June, 2021 | By Property852

One of Hong Kong's largest property developers is attempting to motivate residents to get vaccinated for COVID-19. The HK$10.8 million (US$1.4 million) apartment being offered is a single-room flat at Sino Lands Grand Central project in Kwun Tong on Kowloon's eastern side.

The Tower Three, 47th floor, 449 square foot unit (42 square meters) features two balconies overlooking Kowloon Peak, or Fei Ngo Shan (Soaring Goose Mountain) and the Lion Rock. The developer purposely didn't include it in the first (2018) sales launch.

In the 1950's, the area was an exclusive industrial hub in eastern Kowloon. It gradually evolved from manufacturing to a district of cafes, restaurants, lifestyle shops, and high-end commercial buildings.

The Hong Kong apartment is the key draw in an array of prizes worth over HK$120 million so far, including a diamond-studded Rolex, pure gold, (300 taels), and a Tesla! The city's top real estate developers, charities, billionaires, and others have contributed prizes to accelerate the financial district's vaccine trajectory.

As of June 10th, Hong Kong ranks among the world's least vaccinated areas. Only 17.5 percent of its 7.5 million population has received two doses. With vaccines free and readily accessible, the statistics are horrendous. Local authorities are trying hard to correct this severe shortfall in vaccinated residents. It is essential to resume a humming economy and re-open borders.

Grand Central, located near the Kwun Tong MTR station, is part of the Kwun Tong Redevelopment Plan. It is the Urban Renewal Authority's (URA), most extensive plan ever, according to Thomas Lam, Knight Frank's executive director. He views it as an up-and-coming cool neighborhood.

The move-in-ready development totals 1,999 units in four high-rise towers. It was developed jointly by Sino Land, Chinese Estates Holdings, and the URA. Since 2018, over 1,800 units were sold from HK$18,000 to HK$25,000 per square foot. The greening ratio, a measure of green space proportions, is 30 percent of the total area.

While many Hongkongers are shunning COVID-19 vaccination for various reasons, they are always zealous for city property, even though the city is infamous for dizzying home prices, lack of affordability, and chronic public housing shortages.

The Grand Central Hong Kong apartment sweepstakes is co-sponsored by Chinese Estate Holdings and Ng Teng Fong Charitable Foundation. Furthermore, the foundation is separately donating 20 prizes of credit or prepaid cards valued at HK$100,000 each to permanent as well as non-permanent residents.

The sponsors will pay transaction costs, stamp duties, as well as the monthly management fee of HK$4 per square foot for the first year. The lucky winner could alternatively hold it for an investment, easily renting it out for over HK$200,000 income annually, stated Knight Frank's Lam.

The luxurious Hong Kong apartment lottery registration will open on June 15 at 9:00 a.m. and end on or prior to September 1st. Winners will be drawn randomly September 8th and results will be announced the same day.

News outlets across the U.S., Japan, India, Thailand and certain European countries widely reported the high-stakes lottery. But have the prizes "moved the needle," so to speak? Since promotions began, vaccine appointments rose. On June 10th, people booking vaccine appointments totaled 38,089, triple the amount in mid-May.

HK companies always have taken ESG seriously, but in a subtle way, according to George Leung Siu-kay, Hong Kong General Chamber of Commerce's chief executive. Their 4,000 member firms employ a total of over 1.3 million in Hong Kong. ESG, which stands for environmental, social and corporate governance, measures a company's sustainability and its impact on the environment, plus the broader society within which it operates.

These donations and lucky draw sponsorships are quite visible since it's in Hong Kong's best interests to widely promote vaccinations and reach herd immunity.

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