Penthouse puts Shanghai luxury challenge in focus
A sale at 250,000 yuan per sq m would be a record, and further shrink gap with HK prices
The price gap between luxury homes in Hong Kong and Shanghai is expected to continue narrowing, fuelled by growing demand from the wealthy at home and abroad.
With Beijing announcing last month its landmark plan to create a free-trade zone in Shanghai, property consultants believes prices in the city are fast catching up with Hong Kong's.
Recently, mainland property agents tipped Overseas Chinese Town (Asia) will offer a penthouse at its super-deluxe project Suhewan, at Suzhou Creek, at an indicative price of 250,000 yuan (HK$314,000) per square metre.
"It will be a record for Shanghai if the penthouse was sold," said Clement Luk, chief executive at Centaline (China) for eastern and northeastern China.
The price for luxury homes in Hong Kong was about three to four times that of Shanghai, compared with 10 times or more a decade ago, he said.
The establishment of the free-trade zone would definitely help to lift luxury home prices as an influx of overseas and domestic businessmen seek opportunities in the city, Luk said.
"The gap in prices between the two cities will narrow as Shanghai will certainly be a top priority when they seek property investments," he said.