A 70-year-old, three-storey house in Victoria Peak has hit the headlines this week after it was reportedly bought for USD193 million by Jack Ma, founder and chairman of Alibaba, reported the International Business Times.
With a 270-degree view of Victoria Harbour and 9,900 sqft of living space, Ma’s new residential property is reportedly the second-most expensive in the world, coming in behind Anatolia in Mumbai, a USD1 billion property owned by Indian multibillionaire Mukesh Ambani.
But it’s not only Jack Ma that has hit the headlines in Hong Kong’s property market this week. The island’s luxury market, on the whole, has been causing a stir.
Despite recent stock market volatility in China slowing down total sales volumes, Hong Kong’s high-end market is going from strength to strength, recording a 24.4 percent month-on-month rise in residential sales worth HKD10 million (USD1.3 million) or more in July, a recent Knight Frank report revealed.
The increase is all the more noteworthy considering that the total residential sales volumes in Hong Kong declined by 6.6 percent across the month.
Hong Kong Island and Tsim Sha Tsui were the regional winners when it comes to primary luxury transactions, with 10 out of 14 units sold at The Redhill Peninsula and all units sold at mega-luxe Opus by July this year on the island. Meanwhile, The Harbourside in Tsim Sha Tsui saw a unit sell for a notable HKD62,910 (USD8,000) per sqft during July.
Kowloon is also becoming a focus of luxury development, according to the South China Morning Post, after the resounding recent success of the Ultima project from developer Sun Hung Kai Properties.
Cheung Kong Property Holdings is currently developing the ultra-luxury Stars by the Harbour waterfront project in Hung Hom, slated for completion in June next year. Comprising 321 units across for towers and nine houses, the project has an average selling price of HKD23,000 (USD3,000) per sqft.
Analysts expect Hong Kong’s residential market to hold strong and resilient, regardless of any momentary dips in volumes, as demand is projected to remain sky high for the Chinese special administrative region. Interest rates should also continue to remain low, and prices firm for the forseeable future, stoking the embers of demand ever further.
Image is by Brian Sterling and is used under a Creative Commons licence