The property market has been robust lately. Apart from large projects, small and medium-sized developers are also marketing boutique homes to cater to buyers with a preference for niche properties.
I read about one in The Standard - 42 Tung St - which is located in the urban core.
Demand for residences in such locations has never waned, so I was curious as to how the developer managed to secure the site.
A real-estate section colleague then told me the developer is a firm headed by Keith Kerr, a former Swire Properties chief who is now president of the Real Estate Developers Association of Hong Kong.
The 42 Tung St site, formerly Tung Shing House, was purchased five years ago for more than HK$150 million by boutique property firm TDS, of which Kerr is chairman. The group also has other projects on Kennedy Road and in Repulse Bay.
As the Tung Street plot is in the vicinity of Hollywood Road, it has the right qualities for development into boutique residences for middle-class buyers.
Urban land for residential development has long been in short supply. Apart from developments on top of MTR stations, almost no such sites are available.
But the lack of new sites has opened up opportunities for redeveloping existing buildings into boutique homes - projects that are most suitable for smaller developers.
During his many years with Swire, Kerr had taken part in many major ventures on both Hong Kong and the mainland.
Some of the local projects also involved commercial buildings as well as the acquisition and merging of property titles for redevelopment. To conduct such acquisitions title by title, you need a team that is both meticulous and patient.
An existing property can also be acquired in one go, but it takes good knowledge of the market in that district. You also need special expertise in how to configure and position the new project.
The fact that Kerr is one of the few expats who has ever taken the REDA presidency testifies to the depth of his understanding of the ins and outs of the local property market. It also explains why he is able to take a share of the market pie alongside the big players.
Siu Sai-wo is publisher of Sing Tao Daily
