Peak retains magnetism despite slump

PUBLISHED : Wednesday, 08 October, 1997, 12:00am
UPDATED : Wednesday, 08 October, 1997, 12:00am

Buyers continued their love affair with the super-luxury class of properties on The Peak and the south side of Hong Kong Island during the third quarter in spite of a general downturn in the luxury sector, agents said.

Sales totalled about $700 million, almost double the $383 million chalked up in the second quarter, they said.

'These homes continue to sell because they are so unique and there is a lack of stock,' First Pacific Davies director Jackie Langridge said.

The third quarter was highlighted by notable sales, agents said.

A 9,695-square-foot home in Lugard Road sold for $230 million at an accommodation value of $23,723 per sq ft. This tops the $21,000 per sq ft paid by New World Development for the Eric Hotung residence in May.

Agents also reported the sale of a 13,600 sq ft home in Barker Road for $270 million, an accommodation value of $19,853 per sq ft.

A 4,180 sq ft townhouse at Double Bay was sold for $120 million with an accommodation value of $28,708 per sq ft.

A fourth residence, measuring 7,109 sq ft, in Mount Kellett Road sold for $126 million with an accommodation value of $17,724 per sq ft.

Ms Langridge said third-quarter sales volumes were down slightly from the second quarter. The dip was due to lack of supply, she said.

'We have had a lot of buyers out looking,' an agent said.

The $383 million in sales during the second quarter included a 9,410 sq ft house in Plantation Road which sold for $166.8 million. The accommodation value worked out to $17,261.

Ms Langridge said most buyers were local.

'It is a myth that people from [the mainland] are in the market,' she said.

Agents said many new buyers were end-users who were planning to tear down old homes and build new ones.

Agents said this would only further deplete the stock of older super-luxury homes, which in turn would continue to drive up prices.