Hong Kong outperforms global gateway cities as favoured investment destination for property over US$10 million
- Hong Kong registered 60 property sales worth over US$10 million in the first half, 61 per cent lower than a year earlier amid global headwinds
- Although Hong Kong’s luxury property is seen as a good store of value, prices of top tier real estate is likely to fall by 10 to 15 per cent this year
The city recorded 60 such residential transactions in the first half, 61.3 per cent lower than the 155 seen a year earlier, according to Knight Frank. The number of deals, however, was 15.4 per cent more than Los Angeles, which came second.
“Against the backdrop of quantitative easing in different parts of the world, luxury residential assets are [a] good store of value for investors,” said Maggie Lee, senior director and head of residential agency at Knight Frank Hong Kong. “Coupled with the scarcity [of] luxury homes in Hong Kong, the buyers are still optimistic these assets would bring capital appreciation over a longer-term period.”
Recent property transactions are an indicator of where prices are heading.
This week, the Cheung family, which controls the bread and biscuit maker The Garden Company, sold a building comprising six flats with an area of 11,696 sq ft on Kowloon Tong’s Peony Road for HK$221.28 million (US$28.5 million), 21 per cent lower than the asking price.