Hong Kong Luxury Apartments
Hong Kong developers are poised to find out just to what extent the city's booming sharemarket has pushed up demand for luxury housing.
Swire Properties is seeking buyers for six apartments at its Frank Gehry-designed building priced as high as $HK520 million ($US67 million or $84.9 million). Wheelock & Co and Nan Fung Group pulled together an international team of architects to create its "ultra-luxury" house and apartment project in the city's prestigious The Peak neighbourhood, which may go on sale in the third quarter. CK Hutchison Holdings and Sun Hung Kai Properties are also preparing to sell high-end residences.
The projects are being offered on the back of a stock boom that has driven Hong Kong's benchmark index to an almost eight-year high. How they fare may signal whether a recovery in the luxury market, which made prices rebound to a two-year high in the first quarter, has further to go.
"We can see that the stock market is going to continue to be quite strong, and that tends to be positive for the luxury property market, " said Patrick Wong, an analyst at BNP Paribas SA. "Both the A-share and Hong Kong markets are doing well, so that combined will have a wealth effect." A shares are those traded on the mainland.
Prices of homes that are 100 square metres (1076 square feet) or larger climbed 0.3 per cent in March from a month earlier while prices of smaller units were unchanged. Luxury residential per-square-foot prices for the first quarter were $HK19, 087 a square foot, the highest since the same period in 2013, according to Savills Plc.
History suggests rising stock prices and demand for luxury property go hand in hand: Prices of larger units jumped by almost a third from the beginning of 2007 through the second quarter of 2008, according to government data, a period during which the Hang Seng Index touched a record high.
CK Hutchison, controlled by billionaire Li Ka-shing, may start selling two high-end developments in the Kowloon district as soon as this month, according to Executive Director Justin Chiu. They follow sellouts at two cheaper residences this year that targeted first-time homebuyers and middle-class families.
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Photo Jigsaw Puzzle of Exterior of the Repulse Bay luxury apartments noted for their unusual
Home (Robert Harding)