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SCMP Reporter

A Middle Gap property catches the eye of those focused on a limited niche

A luxurious 8,165-square-foot house on The Peak, to be sold by public tender, is expected to serve as an indicator of the area's rare supply of detached houses.

Realtors said the two-storey house, once occupied by outgoing PCCW deputy chairman Linus Cheung Wing-lam, is expected to sell for about $150 million (or an average price of $18,000 per square foot). The house,  at 24 Middle Gap Road, has a site area of 16,330 square feet and a plot ratio of 0.5.  It is owned by PCCW.

'Middle Gap Road is one of the most expensive areas on The Peak,' said Antonio Wu, an executive director of investment at Colliers International. 'It may  be less expensive than Baker Road, which  has a better view.  However, it is still being sought in the market because of the scarce  supply of detached houses and because it is a sound neighbourhood.'

Among the owners of the 13 houses on Middle Gap Road  are Duty-Free Shoppers co-founder Bob Miller and Jebsen & Co chairman Michael Jebsen.

FPDSavills, sole agent for the property, said the deadline for public tender was February 20.

'The price will serve as the district's latest indicator, since the last transaction was conducted four years ago,' said FPDSavills director Jimmy Fong. According to FPDSavills, the last transaction at Middle Gap Road was for the property next door, at 26 Middle Gap Road, in December 1999.

The property, which sold for $148.88 million, had a site area of 16,535 square feet and an accommodation value of more than $18,000 per square foot.

'The site is similar in size  to  the PCCW property, but with a much older building that had to be torn  down.  I am confident that the house at 24 Middle Gap Road can be sold for a similar price, with a 13-year-old building that fully utilises the plot ratio.'

He said the house, which faces the South China Sea, was built by developer Sun Hung Kai Properties to  a design by architects' firm Palmer & Turner in 1991.

Mr Fong said most potential buyers had not indicated they planned to redevelop the site, which comes with an oval swimming pool and spacious garden.

Ricky Poon, a director with Collier International, estimated  the price for the top-end  luxury residential property at 20 per cent  less than the price in 1999.

'A site with a well-built house  can sell at a price up to 25 per cent  more than a site with an old house that  has to be redeveloped,' Mr Poon said.

He estimated building costs for the house at about $1,500 to $ 1,800  per square foot.

The most recent point of reference, Mr Poon said, would be Swire Properties' four-house development at 3 Coombe Road, which included four detached houses in a single lot.

'The four detached houses share the same lot number. The view and the location are very similar to that at 24 Middle Gap Road,' he said

The residential development, with houses ranging in size from 4,374 sqft to 4,436 sqft, sold at an average price of $15,000 to $16,000 per square foot in the middle of last year, Mr Poon said.

'The supply of detached houses is decreasing. Many sites on The Peak were bought by developers who created smaller town houses,' he said.

The government's cautious application list of land sales had cleared market doubts about the supply of luxury sites, he added.

The application list had had only a minimal effect on luxury residential homes because the supply was limited, Mr Poon said. He added that it would only speed up the decision-making process for wealthy buyers.

Anthony Lau, an executive director with Knight Frank's valuation department, said a single transaction was not likely to have a marked effect on the fragmented luxury detached house market.



Peak house sale will serve as luxury indicator