Hong Kong luxury housing market back in spotlight after record sale prices

There are signs of a revival in homebuyers' interest in the Hong Kong market, thanks to developers' discounts, low interest rates and a government concession on stamp duty, but top-end properties are once again the talk of the town, with some recent prices ranking among the top five deals ever.

Analysts said the recent deals would boost buying sentiment but had reservations about whether they would lift up the entire luxury market, which has been losing momentum in the absence of external demand from investors and wealthy mainlanders following a series of government measures designed to rein in the market, beginning in October 2012.

Howard Lo, senior district sales director at property agent Midland Realty, said about 80 per cent of buyers in the luxury residential market were locals buying for their own use or long-term investment.

"The number of mainland buyers has dropped by 80 per cent," he said.

After 18 months in the doldrums, the luxury residential market has been in the spotlight recently following Sun Hung Kai Properties' sale of all four houses at The Seafront development in Tsing Lung Tau, Tsuen Wan West, for prices that went as high as HK$55,880 per square foot - a record for a New Territories residence.

Swire Properties said earlier this month that it had sold a 5,409 square foot unit occupying the entire 11th floor at its Opus Hong Kong development on Stubbs Road for HK$430 million - about 8 per cent lower than its asking price in December, when it failed to attract a single bid. The price was HK$79,497 per square foot of saleable area, making it the fourth most expensive transaction for a flat in Hong Kong.