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Everything about Landscope Christie's International Real Estate and the Hong Kong luxury property market
Polarisation Continues
Despite the lacklustre sales in the mass property market, the high end market blossomed with more significant sales. On the heels of house transactions in Stanley and Tai Tam, other areas were picking up, 1 Shouson Hill Road East had witnessed the bulk sale of 6 houses to a local veteran investor for $280 million. Wheelock Properties’ 3-5 Gough Hill Path on the Peak had its second large house sold for over $220 million and eight houses were reportedly sold at Sun Hung Kai Properties’ Severn 8 in the same neighbourhood, all setting record prices for similar properties.
In mid November, 12 Mount Kellett Road, the only sizeable luxury residential site on the Peak on the government’s application list was successfully triggered for public auction. The offer price by a local developer was $768 million, or about $18,000 per square foot gross floor area. This has set a new benchmark for luxury properties and more importantly, it has kick-started a frenzy of property investment in the luxury sector, with many large apartments and houses changing hands in escalating price. The transaction volume is more than 3 times the average of first nine months of the year. The stabilisation of interest rate and the outstanding performance of the stock market have combined to add fuel to the buying spree, culminating in the sale of a number of big houses with values well exceeding $100 million. This has prompted developers like Sun Hung Kai Properties to withhold their remaining houses at Severn 8, and other sellers are quick to raise the bar.
With more IPOs expected in the equity market and more bullish views taken by foreign investors. the high end property market is set to benefit. The upward trend will be underpinned by the strong local economy and the swift amassing of huge wealth for the super-rich, who have benefited most in this wave of economic boom. So the price gap between ordinary properties and luxury properties will continue to widen and we do not expect the trend to ease off in the near future.
By K.S. Koh