Is buying a home in Discovery Bay a Good Investment Choice?

Posted: Jun 23 2017Last Updated: Jun 23 2017

23 June 2017 - Embraced by mountains and water, Discovery Bay is a tranquil resort-style community on the northern coast of Lantau Island away from the hectic urban center. The family-friendly neighborhood enjoyed a uniquely low density, which is in every sense a real privilege in Hong Kong.  A morning run along the seashore would be an exemplary healthy habit encouraged by its natural environment. The vast area of green and stunning sea views make Discovery Bay an ideal home for both locals and expats who favour a relaxing lifestyle.


Properties in Discovery Bay & other areas
The types of property in Discovery Bay are diverse, including houses, low-rise buildings and high-rise buildings. Despite its pleasing living environment, the public transportation to get around Discovery Bay is limited, namely only ferries to Central and buses to Tung Chung / Sunny Bay / HK International Airport. According to Hong Kong Resort Company Limited’s Discovery Bay Development Plans, there will rarely be large-scale new development in the neighborhood, meaning that the view from a particular property will not be affected much. From the investment perspective, property prices in Discovery Bay remain relatively stable in spite of an economic downturn and homes in Discovery Bay generally cost lower than those in other regions of Hong Kong. 
In contrast, flats in the city offer the opposite characteristics in terms of public transportation and the property price stability. Compared with properties in Discovery Bay, flats in the urban area are supported by an extensive transportation network and a wide variety of entertainment facilities. Since new developments are frequent and commonplace in the city, the view from the property is subject to changes triggered by nearby development projects. Thereby, urban property prices tend to vary between districts and fluctuate according to surrounding environment.
Personal Assessment
To evaluate if it is worth to invest in the property market of Discovery Bay, the major considerations will be the interest rate, the market condition and the market demand. In terms of interest rate, there is the potential that the Federal Reserve will raise or lower the interest rate. 
Regarding the current market condition, rental prices of Discovery Bay are expected to grow at a moderate pace. In accordance with a thriving housing market, return rate and capital growth of other assets are believed to increase steadily.
Considering the outstanding standard of living that Discovery Bay has to offer, Discovery Bay continues to be an enticing home location for families. Its proximity to greenery and the South China Sea, the eminent retailing and services, along with the prestigious international schools in the community are irresistible for the affordable families longing for a high quality of life away from the hustle and bustle. The relatively inelastic demand for housing in Discover Bay promises a rather stable property price that makes buying homes in Discovery Bay suitable for both short-time and long-term investment.
According to the figures from Rating and Valuation Department and the Global Property Guide, the house price index increased by 416% from Q2 2003 to Q3 2015. It may mean there will be more households considering Discovery Bay as one of their home hunting choices due to the fairly low and stable property price compared to other areas in the city. Depending on your intent for investing in Discovery Bay, the expected return and most importantly the return period, you can assess your choices objectively.

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