Hong Kong real estate market glowing white hot

Before anyone can ask whether Hong Kong’s real estate market will ever slow down, things have heated up once more.

Record $22,993 psf price for The Peak apartment

Hong Kong is already considered one of the world’s most expensive residential market. But just recently, an apartment at the luxurious The Peak district has sold for HK$560 million (S$97.5 million). The square footage which works out to be HK$132,000 ($22,993) psf has set a new record high.

The 4,242 sq ft apartment resides in the Mount Nicholson project, owned by Wheelock Proeprties and Wharf Holdings, subsidiaries of Wheelock and Co., and Nan Fung Development. Mount Nicholson consists of 19 detached houses and 48 flats. The developers have previously sold another unit for HK$131,000 thus prices around this range seem to be the norm for this project.

Before this record-breaking price tag, a HK$522 million (or HK$105,000 psf) duplex penthouse at 39 Conduit Road at Mid-levels was at the top of the list.

Hong Kong considered world’s most expensive city for apartments

With home prices rising almost 400% in 15 years, it is no wonder Hong Kong is considered the world’s most expensive city for apartments. Home ownership is made even more difficult when the median monthly household income has risen a mere 61%. Many middle-income households are stuck as they are unable to afford the private homes yet are not eligible for public assistance. Lower income families are forced to live in “coffin” homes and subdivided flats.

There has been recent talk about Singapore’s property market possibly mimicking Hong Kong’s. Though that is still quite a ways off, the high prices of recent land bids especially by foreign developers could be something to watch.