Hong Kong’s most expensive homes to rent: from The Peak to Repulse Bay, these are the city’s most lavish luxury residences available for lease
- Recently, house No 1 at 11 Plantation Road, The Peak – a sumptuous 10,804 sq ft Wharf Holdings property – drew a monthly lease of HK$1.35 million, or US$174,000
- Mid-Levels Central, Pok Fu Lam and Southside’s beachfront Repulse Bay and Deep Water Bay neighbourhoods hold the city’s most eye-wateringly expensive homes
The extreme is the HK$1.35 million (US$174,000) monthly lease recently signed for house No 1 at 11 Plantation Road, The Peak, as announced in early March by the landlord, The Wharf (Holdings).
The new-build low-rise completed last year offers a whopping 10,804 square foot of opulence overlooking Victoria Harbour. Its rental translates to a record-breaking HK$125 (US$16) per sq ft, between 20 and 26 per cent more than some other houses on the same road.
KS Koh, CEO and founder of Landscope Christie’s International Real Estate, says there are a lot of reasons for leasing a home, even for high net worth tycoons who may be capable of buying.
In a city where “good properties” can command between HK$100m (US$12.87m) and HK$1bn (US$128m), and mortgage restrictions cap borrowing at 40 to 50 per cent, stumping up so much cash is intimidating, he explains. If leasing, corporate money is likely to foot the bill.
“If you are a fund manager, a company chairman or CEO whose company provides housing for you, I think most shareholders would find it acceptable – especially given the size and profitability of the company – no matter how expensive the lease is.”
Those after pricey rental digs might have had more choice of late, given the market slowdown.
Agents say that, rather than accept a lower sale price during a downturn, it made business sense for owners to hold prime assets in their portfolio and take the rental income while waiting for the market to recover.
Martin Wong, associate director, Research & Consultancy, China at Knight Frank, agrees, but says this is not always the motivation in the top-tier sector. “Considering the scarcity, some developers would strategically hold some of their trophy assets over an extended period even when market conditions are good. This is to maintain a good balance in their portfolio between investment and sales,” he said.