Impact of Mismatch Between Demand and Supply in Real Estate Market
Columbarium Niche More Expensive Than Luxury Homes
Repulse Bay's Top Luxury Mansion Priced at 381 Billion KRW
In Hong Kong, known as one of the most expensive real estate markets in the world, a single columbarium niche has become a hot topic for being priced at 900 million won.
According to the Hong Kong Consumer Council, the most expensive columbarium in Hong Kong is located at a temple on the northern outskirts of the Fanling area. The price for one niche is $660,000 (approximately 890 million won), with an additional minimum maintenance fee of $25,000 (about 33 million won) for upkeep.
Inside the Shan Sum Tower columbarium in the Kwai Chung area of Hong Kong. [Image source=Captured from CNN news footage]
The 'Shan Shum Tower' columbarium in the Kwai Chung area is also known to have niches that can hold two urns priced at $76,000 (about 100 million won). Family spaces that can store up to eight urns cost around $430,000 (approximately 580 million won). This columbarium, decorated with white marble, reportedly houses 23,000 urns.
Generally, the size of one columbarium niche is around 30㎤ (approximately 0.032 ft²). In March, a luxury mansion in Hong Kong's 'The Peak' was sold at $32,000 per square foot (about 43 million won), meaning the columbarium niche price is over 30 times more expensive by simple calculation.
This has led to criticism that the mismatch between supply and demand, which caused the surge in Hong Kong's real estate prices, applies equally to columbariums. Hong Kong's predominantly mountainous terrain makes real estate development difficult, resulting in a shortage of space. Instead, densely packed high-rise buildings have led some areas to have the highest population density in the world and the smallest living space per price ratio.
More than 90% of Hong Kong residents choose cremation, but due to the shortage of columbariums, prices have soared relative to space. However, a spokesperson from Hong Kong's Food and Environmental Hygiene Department told CNN, "Honoring the deceased with utmost respect is a traditional culture," adding, "We are approaching this by licensing privately operated columbariums and increasing public columbarium facilities, so the supply status is relatively good."
For the same reason, parking space prices in Hong Kong are also among the highest in the world. Recently, a parking space in a wealthy residential area in Hong Kong was reported to have been sold for $1.3 million (about 1.45 billion won). This broke the previous record of $969,000 (approximately 1.08 billion won) for a parking spot on the first basement level of a financial district building in 2019.
Additionally, according to Forbes on the 13th (local time), one of the luxury mansions along Hong Kong’s iconic coastal Repulse Bay has joined the ranks of the most expensive homes in the world. With a total indoor and outdoor space of about 18,274 ft², it is priced at $281 million (approximately 381 billion won).
Letizia G. Casalino, Executive Director of Hong Kong real estate company OKAY.com, explained, "This mansion is one of the most expensive properties in the city," adding, "It targets ultra-wealthy families from mainland China and Hong Kong among global elites."
Previously, a report released by U.S. think tanks including the Urban Reform Institute ranked Hong Kong as the city with the most expensive housing prices in the world, with the median home price being 20.7 times the median household income.
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