Hong Kong property

Mount Nicholson lives up to its top billing as 16 apartments were sold for a total of HK$9.6b in 2017

Data from Ricacorp Properties shows that 89 flats in the city were sold for HK$100 million or more last year

PUBLISHED : Tuesday, 09 January, 2018, 9:30pm
UPDATED : Tuesday, 09 January, 2018, 10:59pm

Sixteen units at the ultra exclusive Mount Nicholson development on The Peak, which has Asia’s three most expensive homes by floor area, were each sold for HK$100 million (US$12.8 million) or more, the highest in Hong Kong last year, according to data from Ricacorp Properties.

The 10 flats and six houses at No 8 Mount Nicholson Road were worth a total of HK$9.58 billion, said Derek Chan, head of research at Ricacorp, on Tuesday.

Last year there were 89 residential transactions worth more than HK$100 million each, or HK$21.83 billion in total, the data showed. Mount Nicholson’s 16 sales accounted for 18 per cent of the total amount, while 11 flats at the 39 Conduit Road luxury project in the Mid-Levels were each worth HK$100 million or more .

This should come as no surprise, as a report from Knight Frank last March showed that Hong Kong is the world’s third most popular city to buy a property and live for ultra high net worth individuals.

“New quality supply of ultra luxury residential [units] is very limited, especially in traditional prime locations such as The Peak and the Southern District,” said Thomas Lam, head of valuation and consultancy at Knight Frank.

Mount Nicholson now boasts Asia’s three most expensive homes after US$64 million sale

“The price tag is not a problem, quality is. As ultra high net worth individuals are still looking for quality projects, I expect this trend to continue. Fixed assets are still one of their favourite investment items, especially when they know future supply of such quality projects in good locations is limited.”

Mount Nicholson’s location and facilities make it unique, according to Colliers International.

“As it is near East Mid-Levels, some occupiers may enjoy the view of the Victoria Harbour,” said Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International.

Buyers of the Asia’s most expensive homes were earlier identified as Hong Kong resident Lin Zhongmin, who bought two flats with a combined area of 8,821 square feet in November for HK$1.16 billion.

One flat, measuring 4,242 sq ft, fetched HK$560.2 million, or HK$132,060 per square foot, making it Asia’s most expensive residence by floor area. The adjoining flat, measuring 4,579 sq ft, sold for HK$604.2 million, or HK$132,059 per square foot.

Another 4,266 sq ft unit was sold to mainland businessman Zhu Xingliang in November for HK$499.88 million, or HK$116,945 per sq ft, making it Asia’s third most expensive apartment.

Ricacorp’s data also shows that the average price for a new flat in 2017 was HK$12.75 million, up 16.9 per cent from HK$10.75 million in 2016.

This sharp increase in prices may add pressure on Chief Executive Carrie Lam Cheng Yuet-ngor to speed up the supply of affordable housing or impose cooling measures to curb the rapid price growth.