Interest still high in luxury market
THIS week's sale of a development of townhouses on The Peak for $4,046 per square foot provides the latest indication of price levels in the district and points to continued investor interest in prestige residential property.
Right Glory Investment paid $123 million for Seapower Villa at 37 Severn Road in what is believed to have been the first transaction this year involving a major residential development on The Peak.
First Pacific Davies executive director Mr Raymond Ho, who arranged the deal, said escalating rents caused by limited supply and an influx of expatriates would continue to fuel demand for property at the top of the housing market during 1993.
He said: ''We saw plenty of sales activity in the luxurious residential investment market during 1992 and, with the prospect of higher yields, this is likely to continue.
''Investors are particularly interested in developments of this scale, priced below $200 million.'' Completed in 1986, Seapower Villa comprises eight townhouses of 3,800 sq ft each with two swimming pools, two tennis courts and gardens.
The development is one of only a few in Severn Road with direct, two-way access off Plantation Road.
All houses are leased to corporate tenants for a total of about $720,000 per month.
Rents range from $72,000 under two-year-old leases to $105,000 under the latest lease.
This equated to a 46 per cent rise from $18.9 per sq ft to $27.6 per sq ft during the period, said Mr Ho.
Several leases are due for renewal this year.
The development was sold by subsidiary companies of Seabase International Holdings and a third party.