Businessman pays record rent for Four Seasons flat

PUBLISHED : Wednesday, 05 July, 2006, 12:00am
UPDATED : Wednesday, 05 July, 2006, 12:00am

Serviced suite on Central waterfront fetches close to $500,000 a month

Four Seasons Place has set a new record for the most expensive serviced apartments in Hong Kong, after leasing a penthouse on the waterfront at Central for close to $500,000 a month.

A businessman of an international firm recently signed a contract to lease the 2,800 square foot unit in the 60-storey high-end serviced suite tower, part of the IFC complex in Central, according to Judy Chai, executive director of Sallmanns Residential, who clinched the deal.

The total rental under the one-year contract will amount to $6 million, equivalent to a decent flat in Hong Kong's urban area.

'With such a price, you can probably lease a big house of 7,000 to 8,000 square feet in Deep Water Bay or on The Peak,' said Ms Chai.

A 1,490 square foot apartment on the 57th floor of the Four Seasons was rented out at $90,000 a month, she said.

'The tenant is a businessman of a multinational company, who wants his home well serviced, located in Central's CBD and convenient for the airport express,' said Ms Chai. 'The supply is rare. It is believed to be the only product with such size on the market right now.' She declined to unveil the exact rental but said it would be more than $150 per square foot.

The 2,800 square foot apartment is one of the two penthouses at the 519-room Four Seasons Place. The larger one is 3,600 square feet.

With no new supply expected in Central and growing demand from expatriates amid the improved economy, property consultants believe the occupancy and rental levels of high-end serviced apartments will remain firm.

Jane Garnett, director at CB Richard Ellis residential services department, said rental performance of serviced apartments in the second quarter was stable on a quarter-by-quarter basis, but recorded increases compared with last year.

Rentals of premium serviced apartments saw a 0.7 per cent drop from the previous quarter but reaped a 5.8 per cent rise year on year.

Boutique serviced apartments experienced a gain of 2.1 per cent on the previous quarter and 10.9 per cent year on year.

'We anticipate that rentals for serviced apartments are likely to increase by 10 per cent to 15 per cent over the course of 2006,' Ms Garnett said.