Hong Kong flat becomes most expensive in Asia by square foot
A flat in Wheelock’s ultra luxury residential property Mount Nicholson at The Peak has sold at a new record price per square foot in Asia, with analysts saying an expected reopening of Hong Kong’s border with mainland China will likely boost the city’s real estate market.
The developer sold flats 16C and 16D at phase three of Mount Nicholson for a combined HK$1.2 billion (S$208 million) to the same buyers, Wheelock said in a statement on Tuesday, without disclosing the identity of the buyers.
Flat 16D and three car parking spaces at Mount Nicholson were sold for HK$639.796 million, or HK$140,800 per square foot, breaking the record held by a flat in CK Asset Holding’s 21 Borrett Road luxury resident project, which also came with three parking spaces and was sold for HK$459.4 million – or HK$136,000 per square foot – in February.
The price for flat 16C stood at HK$560.92 million, or HK$134,000 per square foot, which was only slightly lower than the previous record at Borrett Road.
The bumper price indicates Hong Kong’s luxury properties remain extremely sought-after by buyers even though the overall economy has not recovered from the impact of the pandemic last year and months of social unrest since mid-2019.
“The record-breaking price came right after the news report that Hong Kong’s border could reopen as early as next month. This has given hope to wealthy mainlanders from the Greater Bay Area to come across the border and buy luxury homes in the city,” said Eric Tso Tak Ming, chief vice president of mortgage consultancy mReferral Corporation.
Hong Kong‘s land border with the mainland will reopen fully to quarantine-free travel by June at the latest, official sources told the South China Morning Post this week.
The scheme will entail a small pilot programme involving daily quotas in Guangdong province in December, followed by an expansion in February to allow “mass events”, a source said, reaffirming what Chief Executive Carrie Lam Cheng Yuet Ngor had suggested last week. A full border reopening will happen in June, or earlier, if all goes smoothly.
“In addition, interest rates remain at their lowest levels on record while inflation pressure is looming. This has led those who can afford to pay the price to buy properties now, particularly luxury ones as supply remain limited. The outlook for the luxury market remains bullish,” said Tso.
Mount Nicholson was developed by Wharf Holdings along with Nan Fung Development and comprises 19 detached houses and 48 flats in three phases. It has some of Asia’s most expensive homes in terms of square footage. Its location, reputation for build quality and celebrity buyers, has made it a much sought-after address for Hong Kong’s wealthy set.
In May, Mount Nicholson broke another world record by selling a single parking space for HK$11.9 million, the highest price even seen worldwide.
This article was first published in South China Morning Post.
