The price of luxury homes in Hong Kong shows no signs of abating coming into 2022, especially with a record-breaking sale at The Peak.
In November 2021, Wharf Holdings and Nan Fung Development sold two units at Mount Nicholson for more than HKD 1.20 billion (US $154.1 million). According to a public record, a unit in Tower D on the 16th floor fetched for almost HKD 639.8 million (US $82.1 million)—setting a record for the most expensive apartment in Asia per square foot.
If you aim to sell a luxury house for a higher resale price in Hong Kong, choosing the right upgrades is important. In terms of providing the best possible return on investment, here are the top three luxury home upgrades for 2022.
1. Create An Illusion Of A Bigger Floor Space
Luxury homeowners can benefit from a bigger floor area by knowing how to maximize the space. Start with getting rid of clutter. For example, are two carpets needed in the living room? When you see more of the floor, it creates an illusion of an expanded area.
A decluttered space may not inherently affect the sale price for your luxury apartment based on the saleable area. It does, however, allow you to impress buyers and increase the chances of closing a sale. The aesthetics of tricking the mind into seeing a bigger floor area has its other advantages.
Take a Tower C unit at the Mount Nicholson development, for example. The apartment comprises almost 4,200 square feet of floor area. Upon the turnover of a HKD 560.9-million (US $71.9 million) sale, the unit’s living room only had:
- 1 carpet
- 1 painting
- 2 coffee tables
- 2 floor lamps
- 2 sofas
- 3 large coffee tables
- 4 arm chairs
- 5 side tables
As prices for luxury homes in Hong Kong reach up to HKD 100,000 per square foot, certain buyers are likely to pay a premium for a luxury apartment with as much space as possible.
2. Remodel Your Bathroom
OKAY.COM advises luxury homeowners to remodel bathrooms when planning an upgrade. Aside from new flooring, most prospective buyers want to see the bathroom before inspecting other areas. While a remodeled bathroom uplifts your property’s resale value, don’t spend more than 10% of the purchase price for this upgrade.
As an example, you should only spend up to HKD 3.2 million (US $410,660) on upgrades if you bought a luxury apartment for HKD 32 million (US $4.1 million).
The 10% rule applies to every other home improvement project—any higher and it will become more difficult to recover the expenses upon reselling a luxury property—unless you’re a billionaire who can afford US $275 million for renovations.
3. Replace HVAC Filters (Especially For Beachfront Luxury Homes In Hong Kong)
A luxury apartment’s resale price in Hong Kong largely depends on the state of upkeep, particularly for beachfront properties in Island South. Beachfront homes need more frequent maintenance work such as replacing filters for heating, ventilation and air-conditioning systems.
Take note that upgrading an HVAC system may not yield a higher resale value, but it ultimately contributes to a well-maintained house. You should replace HVAC filters ideally every month to remove sand and other fine particles.
Likewise, you should inspect windows and their fixtures regularly because salty air corrodes metal surfaces. Stick to a quarterly schedule of pressure-washing windows to prevent corrosion. If you have a fireplace, make sure that smoke doesn’t come out through windows or holes in the roof and walls.
The Hong Kong Institute of Surveyors (HKIS) requires a properly constructed chimney for every fireplace:
- Smoke should only exit through a chimney.
- Chimneys must have at least 28 square inches of internal sectional area.
- The internal sectional area must be equivalent to a six-inch diameter if you use circular pipes.
Once you decide on a specific upgrade for your luxury house, you should focus on finding a competent contractor. By doing so, you’ll avoid common disputes for home improvement projects. Interior decoration work, in particular, is one of the top three common complaints among homeowners, according to the Hong Kong Consumer Council.