Peak price sought for redeveloped Genesis homes
Developer Shimao China aims to set a new record for the most expensive houses sold in Hong Kong
What is the appeal of buying a house that was once part of The Genesis, which during the heyday of Hong Kong's property market held the record for the world's most expensive property?
While the two houses for sale at 21 Severn Road are unlikely to sell at prices that would make the Guinness Book of World Records, they are poised to raise the bar for the most expensive homes per sqft in Hong Kong.
Developer Shimao China Holdings recently indicated a target price of $32,000 per sqft for one of the 6,000 sqft houses.
The unit price beats the existing record of $31,300 per sqft for a penthouse in The Arch, sold earlier this month.
Shimao China bought The Genesis in December 2001 for $230 million through a foreclosure sale by the Bank of East Asia.
The Genesis became the world's most expensive house when it was bought in November 1996 for $540 million by Pearl Oriental Holdings.
The firm's chairman, Wong Kwan, is a rags-to-riches entrepreneur who began his career shovelling pig excrement in the mainland. Mr Wong turned down a $900 million offer for the house during the property boom in 1997.
The two houses on The Genesis site were built in a $100 million redevelopment project as Shimao China's core asset in Hong Kong.
Each detached house has a private lift and four bedrooms of 170 sqft to 550 sqft with ceilings 4.26 metres high. The master bedroom has a whirlpool bath.
Each house also features a 300sqft terrace and private swimming pool.
Shimao China executive director Jason Hui said he aimed to break the record for the most expensive house sold in Hong Kong with House A which, of the two houses, had the better views of Victoria Harbour and Island South.
'Some potential buyers have made offers of up to $30,000 per sqft so I am quite confident that our target price will eventually be met,' Mr Hui said.
Jeffrey Ng, a director of Midland Realty, said the two houses were among 29 on The Peak that would come on the market this year. Wharf will release five houses at 3-5 Gough Hill Road and Sun Hung Kai Properties will offer its 22-house development at 8 Severn Road.
'There will be even less supply on The Peak next year,' Mr Ng said.
He expected new supply next year to be 11 houses: New World Development's eight houses at 6 and 10 Black's Link, two houses at 15 Bluff Path from Chuang International and a house developed by Top Sight at 73 Mount Kellett Road.
Colliers International said the higher price premium for luxury properties had slowed transactions in the first quarter.
Director of research and consultancy Simon Lo said: 'The total number of sales transactions fell about 30 per cent despite the continued growth of capital values. This was due to the reduced number of property launches in the primary market and the increased price premium for high-end residential homes.'
