Lifestyle

The Reasons behind Repulse Bay's High Property Demand



>> Related Article: Exploring the Perks of Living in Repulse Bay

A high-end property in Repulse Bay always comes with a picturesque and expansive sea view so the cost is usually higher than those in other districts. Located by the sea with rolling mountains as the backdrop, Repulse Bay is dotted with low-density homes which shape a star-studded luxury residential market.

Repulse Bay is veritably the golden zone on Hong Kong Island. Some senior government officials and the rich and famous have chosen to reside there, and invaluable houses are everywhere.

The real estate market of Repulse Bay is relatively active with regular news about deals over 100 million dollars. The average rental cost for a 1000 square foot or above unit is around HK$100,000. It is evident that those who can afford the price and rent of a unit in Repulse Bay are both wealthy and famous.

High and Sustainable Demand

Though the entry cost is high and there is a constant shortage in supply, both the demand and price of the high-end property market of the southern district, dominated by old but prestigious properties, performs sustainably well.

According to the sales record of the second quarter, the buying and selling of luxury homes in Repulse Bay was relatively active with nine deals closed: two each for Fortuna Court, Monte Verde and Ridge Court.

Some of them are located near the area where the beginning of the district is. Most of them were sold at record-breaking prices.

For example, two lower units of Fortuna Court were each sold at $110 million, and the cost was $45,000 per square feet of saleable area, while two middle units of Monte Verde were sold at $160 million which was the highest final price ever reached.

In mid-July, a Repulse Bay Belleview Garden three-bedroom middle unit, with a saleable area of 2409 square feet plus a car park, was sold at $50 million, resulting in $24,400 per square foot.

The owner bought the unit at $13.5 million in 2001, which means the unit has appreciated about 2.7 times, and a book profit of about $36.5 million was made.

High Rental Demand

Located in the southern part of the island and close to the business district in Central, Repulse Bay offers a pleasant living environment. Thus, the area is so popular among senior management of major enterprises that rental demand is exceptionally high.

The return on rental is remarkable. A four-bedroom upper floor unit with two suites, a living room and dining room at 1,953 square feet at 117 Repulse Bay building, where there is only one flat on each floor, was rented out at $145,000 per month in September, and the cost per square foot was $73.4.

In the same month at Pine Crest, a three-bedroom unit with a living room, dining room, suite and a panoramic sea view, with a saleable area of 1917 square feet, was rented out at 120,000 per month, and the cost per square foot was $62.6.

Selective Offers



Hong Kong Parkview
The Hong Kong Parkview has been standing at 88 Tai Tam Reservoir Road for 26 years. Eighteen blocks offer 980 units in total. The saleable area is between 1,001 to 2,380 square feet. The estate is next to Tai Tam Country Park, surrounded by green mountains, with a high degree of privacy. The estate operates a shuttle bus service to Central pier, with stops at Admiralty, Wan Chai and Causeway Bay.

No.56 Repulse Bay Road
Located by the beach, No.56 Repulse Bay Road is a low-density estate comprising 12 blocks of building, offering 53 apartments. The saleable area is between 2,131 and 3,463 square feet. There are floor-to-ceiling windows with a commanding and pleasant view.

Celestial Garden
Celestial Garden, located on No.5 Repulse Bay Road is a 20-level, low-density apartment building, offering 60 units in total. There are three flats on each floor. The living room is connected to a big balcony while the dining room features large windows, both offering views of Hong Kong Golf Club and Deep Water Bay at some units. The former chief executive of HKSAR Donald Tsang has lived in the building.

Double Bay
Double Bay has been standing on No.46 Island Road for 23 years. It comprises 12 four-bedroom, sea-view houses, with a more than 3,000 square foot saleable area and connected by a private drive. Each house features an individual car park, terrace and rooftop.

Prestigious Location

Built along Repulse Bay Road, luxury homes are divided by their positions: beginning, middle and end sections. Those located at the beginning of the road near the north of the island are the most expensive. In the middle section, there are shopping and entertainment facilities and property prices stand high and firm. While those properties at the end of the road do not have any niche in location, their prices tend to be a lower.

Security Issues

There are reports of burglary cases in Repulse Bay. In August, there were three cases involving the house of Angela Leong, the fourth wife of Stanley Ho and the house registered under the name of Cheng Yu-tung, the founder of New World Development. To install an efficient security system is necessary.

Backed up by the Mountains

A lot of high-end residential estates in Repulse Bay are built along the hills. From a feng shui point of view, a mountain behind your house means that you are backed up by someone who is very influential. But it has to be a mountain covered by green trees; if it is rocky, it will cause bad luck.