Sale at $110m reflects active luxury sector

A Repulse Bay luxury development site has been sold for more than $110 million, the third big deal in the sector in one week.

Analysts said the luxury market had become increasingly active. Last month, the market recorded transactions valued at more than $1.8 billion, with each sale exceeding $100 million.

Sources said the development site at 110 Repulse Bay Road, owned by Hong Kong private developer Hand Yu Realty, was bought by a locally listed developer.

Most of the recently sold luxury properties were bought by overseas investors from Singapore and Britain.

The overseas interest might prompt some Hong Kong investors or developers to join the buying spree, analysts said.

For the Repulse Bay property, a total floor area of 13,000 square feet is allowed for the 17,507 sq ft site. The buyer can build an extra 2,700 sq ft by paying an additional premium to the government to modify the existing land lease.

Analysts said the price represented an accommodation value of more than $8,500 per square foot.

Last week, Singapore government-funded Pidemco Land agreed to pay $962 million for Block 15 of Hong Kong Parkview in Tai Tam and British-Singaporean investment fund GRA bought the luxury property South Bay Close for $370 million.

Analysts said it was too early to say whether more local investors would join the buying spree as they usually sought short-term returns and the market was not likely to provide that at present.

PROPERTY