Strong demand and limited supply drive top-end prices higher
Leasing prospects for superdeluxe residences remain positive, despite dampened market sentiment and sluggish trading activity.
Property consultants say there is continued interest in the leasing of top-end residences, as wealthy tenants chase a limited stock of large homes in prestigious locations.
Clara Chu, director of residential leasing at Colliers International, says the rental outlook for superdeluxe and large residences remains optimistic due to strong demand and limited supply.
"We continue to see solid leasing demand from high-budget tenants, especially the wealthy mainland businessmen," she says. "These tenants are looking for really big houses or apartments, usually of more than 3,000 sq ft, but there is limited supply. Therefore, we expect the leasing sector to be more resilient even if the overall residential market softens."
The strong market can be shown by this year's major leasing deals. One of the most notable was the lease in August of a 6,000 sqft duplex at Opus Hong Kong in Stubbs Road of about HK$850,000 a month, or about HK$130 per sqft. A 7,000 sqft house at Mount Kellett Road on The Peak went for a monthly rental of HK$800,000 recently.
In Mid-Levels, a 5,453 sqft duplex at Dynasty Court went for HK$298,000 per month. Kerry Properties is offering luxurious apartments in Tavistock at Tregunter Path for lease. A 8,210 sqft penthouse with a terrace is available for HK$500,000 a month.
The project comprises 22 units of 4,860 to 4,880 sqft, and two penthouses of more than 8,200 sqft.
Edina Wong, senior director of residential leasing at Savills, says residential sales have slowed but there are no signs of rents falling in the luxury leasing market.
"Superdeluxe houses at The Peak and Island South are still in demand and landlords are looking for monthly rentals of HK$80 to HK$100 per sqft," Wong says.
"Some owners may have put their properties up for lease instead given the slower sales market. That could raise the stock of properties for lease in the short term. Overall supply remains limited and demand is strong from the financial sector."
On The Peak, Nan Fung Resources is planning to release its new luxury development at Mount Kellett Road for lease. The project, with unhindered views of the south side of Hong Kong Island, will provide 10 apartments of 2,400 to 5,200 sqft, and three large houses of 6,000 to 11,000 sqft.
Hutchison Whampoa Property has a new project at 28 Barker Road on The Peak up for pre-lease. The project is still under construction and it is hoped will provide monthly rentals of HK$160 to HK$170 per square foot.