Multimillion-dollar property transactions in 2021 proved that almost nothing can stop Hong Kong’s luxury property sector from thriving, even during a pandemic.
Several mega-deals over the previous year suggest another looming price hike in the broader market. According to a recent press release, home prices in Hong Kong may increase between 5% and 10% in 2022.
The 2022 Outlook report also predicted the real estate industry’s further improvement in the year ahead. Hong Kong’s pandemic response and border-reopening policies contributed to a rosier outlook.
As Hong Kong’s luxury property segment continues to boom, we take a look at the top deals that may influence market prices in 2022.
Wharf Holdings and Nan Fung Development’s sale at Mount Nicholson set the record for the priciest apartment in Asia per square foot.
An unnamed buyer acquired the property on Tower D’s 16th floor in November 2021 for almost HKD 639.8 million (US $82.1 million). The same buyer purchased Unit C on Tower C’s 16th floor for over HKD 560.9 million (US $71.8 million).
The combined deal value of the two units cost more than double of another property at Tower C, which changed ownership in January 2021 for nearly HKD 490.2 million (US $62.8 million).
Despite being smaller, the apartment’s purchase price equated to a staggering HKD 114,905 per square foot. The transactions at The Peak underscored just how quickly prices for record deals change in Hong Kong.
The previous record-breaking deal happened in February 2021, following a sale at 21 Borrett Road.
CK Asset Holdings sold an apartment with three parking spaces at 21 Borrett Road for HKD 459.4 million (US $59 million).
The transaction involved two blocks on the 23rd floor of the Phase 1 development. It previously held the record price of HKD 136,000 per square foot.
It didn’t take long before another luxury property changed ownership in the affluent neighborhood. In March 2021, a similar property sold for more than HKD 377.3 million (US $48.3 million).
Other luxury apartment deals at the high-end residence didn’t cost below HKD 150 million (US $19.2 million) for the rest of the same year.
A residence listed on OKAY.COM sold for HKD 438 million (US $56.1 million) in November 2021.
The 71 Repulse Bay Road property spans over 3,800 square feet of space with four bedrooms and four baths. Indeed, the four-story luxury house even comes equipped with a built-in elevator.
The residence also features a rooftop where anyone can see scenic views of the surrounding Deep Water Bay and Repulse Bay. Only seven other houses in the area have access to a swimming pool and tennis court.
Deep Water Bay
OKAY.COM’s listing for another luxury house, 33 Island Road, fetched HKD 505 million (US $64.7 million). Unlike the Repulse Bay house, the three-floor property boasts an indoor swimming pool and lobby garden.
Bayside and beachfront properties in Hong Kong’s luxury neighborhoods are particularly popular among expatriate families.
According to OKAY.COM, the presence of nearby international schools attracts large families to find suitable properties.
The Ripple Effect
Cushman & Wakefield expects the sky-high prices of luxury homes in Hong Kong to spill over to mid-market properties.
For example, prices at the Taikoo Shing estate in Quarry Bay inch closer to a historical-high value. The private residential development’s per-square-foot price falls within 9.3% of the previous peak in June 2019.
Residence Bel-Air, a luxury condominium in Kong Sin Wan (Telegraph Bay), is just 4.2% away from reaching the previous peak price in the same year.
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