A luxury villa in Deep Water Bay on Hong Kong Island sold for HK$870.2 million ($110.8 million) on Sunday, according to public records, in the most expensive residential transaction in the city this year.
As Hong Kong’s high-end housing market continues to outperform amid the city’s economic downturn, House 7 at No. 15 Shouson is the first of 15 single-family homes in the project to be has sold, with an unidentified buyer paying HK$108,346 per square foot. of surface to acquire the residential property through a contest that closed on June 26.
“We have seen a significant increase in purchases and interest in Hong Kong luxury properties and in particular the upper luxury market,” said Joshua Miller, CEO of Okay.com. “This is being fueled by a general shortage of luxury properties and detached houses, as well as the belief that capital from China will soon begin to return to Hong Kong, and specifically to the real estate market,” he added.
“The stock market downturn may also be leading buyers to seek refuge in real estate as a more stable investment, particularly if there are concerns of higher inflation in the short to medium term,” Miller said.
Shoson Hill Mansion
The 8,032-square-foot (746-square-meter) luxury home was one of two homes in the project at 15 Shouson Hill Road West on the south side of Hong Kong Island that became up for bid last week, according to deals. developer sales. With a gross floor area of 88,000 square feet, No. 15 Shouson was jointly developed by Emperor International Holdings, CC Land Holdings, Mingfa Group and CSI Properties Limited, according to Emperor International.
Located in Hong Kong’s upscale Deep Water Bay neighborhood, the development gives buyers the opportunity to rub shoulders with the city’s super-rich with billionaires such as CK Asset’s Li Ka-shing and Alibaba co-founders Shi Yufeng and Jin Yuanying. who reside in the area.
The new owner of House 7, a six-bedroom residence less than a five-minute drive from Li’s mansion at 79 Deep Water Bay Road, will be able to enjoy features such as a private pool and garden, as well as a in-house elevator.
Also put up for sale in a parallel auction that ended the same day was the adjacent House 6, which covers 9,550 square feet, although a winning bid for that unit has not yet been announced.
“As the pandemic slows and the (Hong Kong) economy gradually returns to normal, the group expects the high-end residential market to follow,” Alex Yeung, vice president of Emperor International said in a press release announcing the project name. In May. “With the prime location and (exquisite design) of No.15 Shouson, I think the launch will be a focus of attention in the market,” said Yeung.
At nearby luxury properties such as SEA Holdings’ 1 Shouson Hill and Sun Hung Kai Properties’ Shouson Peak, new home sales prices averaged HK$90,000 to HK$101,000 per square foot over the past year, said Alex Leung, director Senior of CHFT Advisory. and Evaluation. He added that this initial sale “would have a benchmarking effect on other units.”
The Deep Water Bay auction is Hong Kong’s latest case of a luxury home hitting a record price in the past two months, including three separate transactions totaling HK$664.5 million at 21 Borrett Road. of CK Assets.
Within this month, a 20th-floor unit in the Mid-Levels project sold for HK$91,895 per square foot, setting a new record price for a non-penthouse unit in the luxury residential property.
During May, a 2,771-square-foot home in the first phase of Sun Hung Kai Properties’ Central Peak project in Mid-Levels East sold for HK$288 million, or HK$103,934 per square foot, which set a record price per unit area on that project, according to transaction records released by the developer.
Despite the resilience of the luxury market, analysts expect luxury home prices to slow, with Vincorn Consulting & Appraisal Managing Director Vincent Cheung noting that luxury home prices “will not rise more than 3 percent in 2022, especially if border travel between Hong Kong and the mainland remains closed.”
In the broader residential market, a Cushman & Wakefield report shows that the total number of home sales in Hong Kong slowed in the second quarter, declining about 32 percent year-on-year to 14,900 transactions.