Luxury home prices hit new high
HK luxury home prices hit new high
By Travis Teo | Posted: 25 July 2011 2106 hrs
SINGAPORE: Luxury residential prices and rents in Hong Kong have hit a new high in the second quarter.
According to a Colliers International's report on the Hong Kong residential market, overall luxury residential prices edged up by 3.8 per cent quarter-on-quarter.
As of May this year, luxury homes have been commanding above HK$19,500 (S$3,020) per square foot – representing a new record high, surpassing the previous peak in mid-2008 by 30 per cent.
Colliers said the robust luxury residential price growth was supported by the tight supply, as well as the strong demand from wealthy mainland Chinese buyers.
Rents have also risen by 4.1 per cent quarter-on-quarter to a record high of HK$47.30 (S$7.33) per square foot per month in the second quarter.
A 1,000-sq ft apartment can command over $7,000 a month in rent.
Sales activity of the overall Hong Kong residential market, however, experienced a slowdown in the second quarter.
The real estate consultancy said this was due to rising mortgage rates, further lowering of the loan-to-value ratio, and growing concerns over the re-launch of Home Ownership Scheme flats.
Still, the luxury segment remained buoyant.
For the three-month period ended May, the number of luxury residential sales transactions that sold for over HK$20 million each increased by 11 per cent quarter-on-quarter.
- CNA /ls