The Ultimate Housing Market Competition: Are Dead People Outbidding the Living?

Hong Kong, known for its bustling streets, towering skyscrapers, and expensive real estate, is also home to an unusual phenomenon in the housing market - the escalating costs of burial facilities for the deceased. While many families struggle to find affordable housing for the living, the price of resting places for the deceased has reached astonishing heights.

The Ultimate Housing Market Competition: Are Dead People Outbidding the Living? Shan Sum tower seen from the outside

Amidst this fierce competition for burial space, one prominent establishment stands out - Shan Sum. Located in a 12-storey building in Hong Kong, Shan Sum offers a unique solution for families seeking a decent place to store their loved ones’ ashes. However, its exorbitant prices and limited capacity have created an exclusive market inaccessible to many.

Shan Sum, meaning "virtuous heart" in Chinese, presents an ornate white marble interior and modern wavy exterior architecture. At first glance, it may appear like any other building in Hong Kong. Yet, this unique structure serves as the final resting place for the deceased. With the ability to accommodate the ashes of 23,000 people, Shan Sum provides compartments that come at a high cost. Some chambers can reach a staggering price of $76,000, while a compartment for up to 8 individuals can cost up to $430,000.

Comparing the area of a standard ash chamber, approximately 0.02 square meters, to the most expensive buildings in Hong Kong reveals the striking difference. In March, a mansion in The Peak, the city's most exclusive neighborhood, was bid for $32,000 for less than 1 square meter. Despite this, Shan Sum is not the most expensive burial place for the deceased in Hong Kong.

The Hong Kong Consumer Council reports that the most costly location is a temple-like complex situated in Fanling's northern suburbs. Priced at a staggering $660,000, this amount does not even include maintenance fees. While this substantial investment may hold long-term value, it is important to note that the storage of ashes at private facilities like Shan Sum is subject to a specific time limit. Permits are valid for 10 years and require a rigorous vetting process that can span several years before eligibility is granted.

Within the premises of Shan Sum, numerous amenities offer solace and comfort to families paying their respects to their deceased loved ones. Ulrich Kirchhoff, the project's architect, has designed the tower with winding terraces and balconies, alongside small gardens providing a tranquil space for visitations. Approximately one-fifth of the tower comprises open space. The architectural design of the building incorporates a wave-shaped structure, inspired by traditional Chinese cemeteries located on the mountainside. In ancient times, mountainsides were considered auspicious for burial due to feng shui principles.

Furthermore, the tower encompasses modern amenities such as dehumidifiers, air conditioning systems, and even applications that enable families to book in advance for offering ceremonies. Each floor within the tower is dedicated to a different religion, including a floor specifically reserved for atheists. The chambers on this floor are adorned in the style of a Chinese house, with doors intricately decorated with gold coins, symbolizing the wish for a prosperous afterlife for the deceased.

This magnificent tower is the brainchild of Margaret Zee, a successful businesswoman involved in the jewelry and real estate industries. Zee recognizes the importance of preserving traditions and cultural practices associated with honoring the deceased in Chinese society. "This is not only the last journey for loved ones to enter the afterlife with serenity but also an opportunity for those left behind to say goodbye," she states. Zee's personal struggle to find burial space for her late husband in 2007 led her to realize the scarcity of such facilities, motivating her to establish Shan Sum.

The scarcity of land in Hong Kong, coupled with the ever-increasing demand for housing, has also impacted the availability of burial space. As one of the most densely populated cities worldwide, Hong Kong faces a significant gap between supply and demand. Despite its total area being 1,110 square kilometers, which is 1.4 times larger than New York City, much of the terrain consists of mountains, making development challenging. Consequently, real estate developers have long favored high-rise towers, maximizing vertical space. As a result, the average house size in Hong Kong is a mere 40 square meters, making it one of the smallest in the world.

Although cremation is the preferred choice for more than 90% of the population in Hong Kong, the desire to maintain ancestral customs and worship practices leads many Chinese families to choose a specific burial place for their loved ones' ashes. This preference for physical burial rather than scattering the ashes further exacerbates the scarcity of storage facilities. With an annual death rate of approximately 460,000 people, twice the capacity of Shan Sum, it becomes increasingly challenging to meet the growing demand for ash storage facilities.

Currently, there are just under 135,000 government-operated facilities available, leaving many families waiting for years to secure a place for their loved ones' ashes. Hong Kong's population is rapidly aging, with over a fifth of its inhabitants already over the age of 65. Predictions indicate that this number will increase to over a third by 2069. Consequently, the demand for burial space is expected to surge, placing renewed pressure on existing facilities and necessitating the construction of additional storage options.

In this fiercely competitive housing market, the prices for burial facilities in Hong Kong continue to rise, surpassing the cost of housing for the living. Shan Sum, with its lavish interior and exclusive amenities, represents a unique solution for families seeking a dignified resting place for their deceased loved ones. However, accessibility and affordability remain significant concerns for many.

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