Strong student-rental demand, competitive pricing and improving transport links are drawing investors to new residential projects in To Kwa Wan, as developers seek to reposition the ageing Kowloon district as part of a broader redevelopment corridor linked to Kai Tak and Hung Hom.

The renewed interest helped push Hong Kong’s weekend primary home transactions to around 500 units, the strongest level in 19 months, according to Midland Realty.

Two of the four major project launches over the weekend were in To Kwa Wan, an older Kowloon district traditionally known for ageing tenement buildings and fragmented redevelopment.

On Sunday, all 130 units released in the first round of sales for the third phase of One Victoria Cove on 1 Bailey Street were sold, according to lead developer Henderson Land Development. Prices started at HK$6.98 million, or HK$20,383 per square foot.

The batch included 101 two-bedroom units and 29 three-bedroom flats ranging from 338 sq ft to 708 sq ft. One Hong Kong investor spent more than HK$110 million to purchase 16 units, the developer said.

Investment demand was a major driver behind the strong sales. Midland Realty said investors accounted for about 40 per cent of its buyers at One Victoria Cove, with some purchasing multiple units for leasing purposes.