Hines Launches First Hong Kong Rental Apartment Project in Tsim Sha Tsui

Global real estate investment firm Hines has officially opened its inaugural rental apartment project in Hong Kong, marking a significant expansion into the Asia Pacific multi-family residential sector. The project, named Dash on Prat, is an 18-storey co-living facility located in the bustling Tsim Sha Tsui district, aiming to provide modern living solutions for young professionals.

Key Takeaways

• Hines has entered the Hong Kong rental market with its first co-living project, Dash on Prat.
• The 18-storey facility is a converted hotel, offering 158 units.
• The project targets junior members of the service sector, emphasizing community and amenities.
• Hines acquired the property in late 2021 for HK$925 million.
• The opening occurs amidst a predicted muted recovery for Hong Kong's rental market.

Dash On Prat: A New Co-Living Concept

Hines' new venture, Dash on Prat, is situated at 21 Prat Avenue in Tsim Sha Tsui. The 18-storey building, formerly the Butterfly on Prat hotel, has been transformed into a co-living space operated by local rental housing specialist Dash Living. The facility offers 158 units, ranging from 210 to 395 square feet, and is designed to appeal to young professionals seeking independence, comfort, and community.

Strategic Investment and Amenities

Hines acquired the former hotel in November 2021 through a joint venture with Mindworks Ventures for HK$925 million. Following the acquisition, the building underwent extensive renovations, including the conversion of its 158 guest rooms and the addition of ground-floor retail and shared amenities. These communal facilities include a shared kitchen, laundry area, workspace, lounge, and yoga room, fostering a sense of community among residents.

Addressing Market Needs

According to Hines' leadership, the project aims to address housing affordability and the desire for a ready-made community in a high-priced market like Hong Kong. "In markets with high prices like Hong Kong, this differentiated accommodation offering aims to allow tenants to share experiences, develop their network, form relationships and build on the Hines promise of providing high quality living," stated Claire Cormier Thielke, Hines’ senior managing director and country head for Greater China.

Expansion in Asia Pacific

Dash on Prat represents Hines' growing commitment to the multi-family residential sector across the Asia Pacific region. The company's pan-Asian core-plus fund, Hines Asia Property Partners, also holds a portfolio of multi-family assets in Japan and is exploring similar projects in Australia. The partnership with Dash Living, which operates over 2,000 rooms across Asia, leverages local expertise and technology to enhance the co-living experience.

Market Context

The launch of Dash on Prat comes at a time when Hong Kong's rental market is showing signs of a slow recovery after a challenging 2022. While serviced apartment rents saw a slight dip in late 2022, occupancy rates and leasing rates in certain areas have shown resilience. The recent easing of COVID-19 restrictions and border controls is expected to further support the city's economic and property market recovery.

Sources

• Hines Opens First Hong Kong Rental Apartment Project, Mingtiandi.