Property

Ultra-Luxury Residences in Demand



As long as The Peak is mentioned, most people will think of the cable car, night view of Victoria Harbour, the Peak Tower, Madame Tussauds and so on.

However, The Peak is known for more than just that. If you want to choose one thing that could best represent the peerless status of The Peak, it has to be the ultra-luxury residences occupied by the rich and some senior government officials, located at prestigious sites with commanding views.

Sometimes we have heard about the record-breaking price of a mansion on The Peak, but few have actually set foot on the site because of its prime location and absolute privacy.

Below is information on three ultra-luxury residences from The Peak; and their names have been mentioned regularly in recent years.

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Wheelock Properties and Nan Fung – Mount Nicholson

Mount Nicholson is jointly developed by Wheelock Properties and Nan Fung. Located at 8 Gough Hill Road, it is composed of 19 bungalows and 48 flats. Phase one includes 17 bungalows with a saleable area ranging from 7,042 to 9,950 square feet. Phase two is expected to be on offer in the third quarter.

Cheung Kong Property – 28 Barker Road

Barker Road is a residential area for the rich and famous businessmen and politicians. It is home to Lee Shau Kee, chairman of Hang Lung Property, and his family, the official residences of the Chief Secretary, the US Consulate General, and the People’s Liberation Army Hong Kong Garrison commander.

28 Barker Road, a seven-storey property, was owned by Hutchison Whampoa for rental purposes. Now, it has been developed into seven mansions, each with a saleable area ranging from 5,271 to 6,863 square feet. All the mansions have been sold and total revenue is $4.238 billion. Among those mansions, the selling price of No.8 was the highest, with cost per square foot amounting to $107,825.

Sun Hung Kai Properties – Twelve Peaks

Located at 12 Mount Kellett Road, Twelve Peaks, the site that was bought by Sun Hung Kai Properties at more than $42,000 per square foot in 2006, consists of 12 mansions, with a saleable area ranging from 3,657 to 4,805 square feet. The No.1, No.3 and No.8 mansions feature a 7.15 metre floor-to-ceiling dining area and each house has an individual elevator. Twelve Peaks topped the list of the 10 Most Luxurious Properties in Asia in 2015, which is published jointly by the World Executive Group, World Entrepreneur magazine, World Real Estate Academy and President magazine.

Transaction Volumes and Prices Up

In the midst of a global economic downturn, all parties of the property market adopt a wait and see attitude in general. Though a new round of supply for new and affordable houses is available, the market reacts cautiously. On the other hand, because of extremely limited supply, luxury residences, especially those ultra-luxury houses, sees the market remarkably active. It has been even further boosted by the exit of Britain from the European Union.

Luxury Residences in Demand

According to statistics, in the first half of this year, deals with houses worth more than $100 million amounted to 59, an increase of about 18% compared with those in the second half of last year.

Po Siu Ming, CEO of residential department at Midland Realty, predicts that in the second half of this year, registration of luxury property in the primary market and, those in the secondary market, will be close to 100 cases and the price of ultra-luxury residences will increase by 5% to 10%, breaking the records of both transaction volumes and prices.

Entering the second half of the year, many luxury residences have been sold at sky-high prices.

One of the most talked about transactions was 15 Gough Hill Road at The Peak. Chuang’s Consortium International Limited sold the property to the chairman and related parties of Shenzhen’s Cheung Kei Group for $2.1 billion, which equals about $227,000 per square foot and is believed to break the global record of price per square foot of a house.

Increase Driven by Brexit

For years, luxury residences at The Peak have long been a symbol of status and identity. They are the most sought-after residential properties by the ultra rich. Since Britain exited EU, the stock market has remained volatile so Mainland investors have transferred their money into Hong Kong’s ultra luxury residential market. Though there is a buyer’s stamp duty involved, it never stops them from purchasing and it helps to revitalise the luxury property market.

Only a month after the UK left the EU, the market has recorded 11 deals for new and ultra luxury houses and the total amount is nearly $2.3 billion. Among them, the Mount Nicholson 8 bungalow, which was developed by The Wharf and Nan Fung Group and, marketed by Wheelock and Company, was sold at $630 million. It is the biggest transaction of the primary luxury property market in Hong Kong after the UK exited the European Union.

In addition, Sun Hung Kai Properties’ (0016) Shouson Hill Shouson Peak 9 bungalow was sold at $38.8 million in mid July, which equals $90,800 per square foot, and is also a record-breaking price of those same properties in the district.

In the secondary market, a flat A unit of Hong Villa on mid-level was said to be sold for $120 million last month. The unit’s saleable area is 3,148 square feet so the price per square foot is $37,600.

Looking forward, new houses for the primary market in the coming months include Mount Nicholson Phase II at The Peak; Redhill Peninsulas villas at Tai Tam; and Horizon Drive bungalows at Chung Hom Kok which will be available in the third quarter.

Demand on the Rental Market Continues

Not only is the demand for luxury residences at mid-level strong, so also is the demand for rentals. Residents on mid-level are mainly rich people and powerful officials. Many are attracted by its prestigious location, absolute privacy, elite school network and proximity to the central business district. Besides, the practical area of most mid-level luxury houses is always high, with tall ceilings and commanding views that evoke a majestic atmosphere.

In July, Barker Road recorded a substantial deal. A duplex at 27 Barker Road, with a saleable area of 4.073 square feet, was leased out in an all-inclusive package at $300,000 per month, which equals $73.7 per square foot. A bungalow on 2 Barker Road, with a saleable area of 3,042 square feet, was leased out at $220,000 per month, which equals $72.3 per square foot.

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