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Top earners demand the best

Kenneth Ko

Sino Group has posted strong leasing performances for its luxury residential portfolio as the increased influx of expatriates and multinational companies' aggressive expansion continue to drive demand for premium accommodation.

Deluxe houses are particularly sought after by a growing number of high-budget tenants looking for top quality living and superior services, and these premium properties have outperformed the market in terms of rental appreciation, according to Victor Tin Sio-un, assistant general manager of the group's leasing department.

For instance, the company's Three Bays project in Stanley has recorded rental increases of about 45 per cent in the past year. The luxury houses, measuring 3,870 sqft each, are fully occupied and commanding an average rental of about HK$80 per sqft to HK$100 per sqft a month.

'The Three Bays houses offer ample open space to residents,' Mr Tin said. 'They come with large garden and terrace areas, and all the rooms have their own balconies.

'The infinity swimming pool overlooking the sea is another attraction. Tenants simply cannot find comparable properties on the market, and the houses are vigorously in demand.'

Costing a monthly rental of about HK$300,000 each, the Three Bays houses have attracted top executives from major financial institutions, insurance companies and consumer products businesses in the Asia-Pacific region.

Mr Tin said demand for premium residences was still on the rise as multinational companies continued to set up and expand their operations in Hong Kong with the prevailing positive economic outlook.

On the supply side, there were virtually no new luxury properties being completed on Hong Kong Island, he said. The stock of leasing properties had been further squeezed as many individual landlords took advantage of the strong sales market to sell their properties instead of keeping them for rental purposes.

Bowen's Lookout in Mid-Levels, another luxury property held by Sino Group for leasing, also benefits from the positive sentiment and enjoys full occupancy.

The project has 26 luxury apartments each of 2,388 sqft. These four-bedroom units, which include two en suites each, are well received by tenants with the average monthly rental in the range of HK$65 per sqft to HK$85 per sqft, about 30 to 35 per cent higher than a year ago, according to Mr Tin.

'The provision of only one apartment on each floor offers residents direct access from the lift to their own apartment. Residents can enjoy high privacy and security,' he said.

'Other attractions include its exceptional location and the magnificent views enjoyed by the apartments. With lush green surroundings, the project commands open views over the city and is just five minutes to and from the Central business district.'

In North Point, the group has 427 luxury apartments at Pacific Palisades for lease.

Mr Tin said Pacific Palisades recorded a near 100 per cent occupancy most of the time and saw a rental increase of about 30 per cent over the past 12 months. Companies were raising their staff housing budgets, providing good support to the leasing market, he said.

In addition, the 88 beach houses of the group's Hong Kong Gold Coast project in Tuen Mun have drawn strong leasing interest with full occupancy.

Measuring from 1,950 sqft to 3,540 sqft each, the beach houses achieved an average monthly rent of about HK$30 per sqft to HK$40 per sqft at present, about 30 per cent up compared with 12 months ago, Mr Tin said.

He said residents would enjoy stunning marina views from the houses, a significant amount of open space and a community living with fresh air. Tenants included senior airline pilots, local industrialists and people in the retail and trading businesses.

'With the support of Route 3 and improved transport infrastructure, including the widening of Castle Peak Road, the project is well connected to different parts of the city. It is just 20 minutes' drive to Kowloon and 30 minutes to Central. To the north, it takes just 20 minutes to the Lok Ma Chau border checkpoint,' he said.

Mr Tin said Hong Kong maintained an edge as an international business centre given its strategic location in the region. There was a trend for companies relocating their offices from neighbouring cities such as Shanghai and those in Southeast Asia back to Hong Kong to tap growing business opportunities.

Despite worries of retrenchment in the United States and Europe as a result of global economic uncertainties, he said multinational companies were positive about the growth prospects of Asia including Hong Kong.

'Tenants are keen to sign up for leases with quality properties,' Mr Tin said. 'We also see a growing number of Chinese businessmen and senior executives with listed mainland companies choosing to reside in Hong Kong. This adds fuel to the leasing demand.

'Many tenants are now looking for fully furnished apartments and this trend will continue. It is necessary to pay more attention to the provision of clubhouse facilities and recreational activities such as special classes and outings which residents can enjoy together and get to know each other better.'

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