The Peak, Mid-Levels or Happy Valley? Hong Kong’s 5 most expensive neighbourhoods to live – and to invest in
The Peak may still be Hong Kong’s priciest neighbourhood – but homes in Southside, Pok Fu Lam, Mid-Levels and Happy Valley are all making money faster, wherever counting the capital gain or annual rental increase you can hope to bank
If you bought a “typical” home in Hong Kong's priciest district in 2009, and still own it, your capital investment would have increased by just 39 per cent.
Renters in the same area – The Peak – would be paying just 11 per cent more today than 10 years ago. Rentals and purchase price differentials in our city vary markedly from district to district. But according to Knight Frank, who have compiled data on the top five – The Peak, Island South, Mid-Levels, Happy Valley and Pok Fu Lam – The Peak remains the most prestigious home address in Hong Kong, despite its relative underperformance.
Average sale price in January 2009: HK$30,500 (US$3,935) per sq ft; in March 2020: HK$42,400.
Capital gain increase: 39 per cent; rental increase: 11 per cent.
Set high above the city on Hong Kong Island's tallest mountain, with abundant greenery and spectacular views, The Peak has been a domain of the elite since colonial times. Never mind that it has no MTR and road access can be perilous; living there is a sign of status.
Here, trophy homes have changed hands at eye-watering prices. A single family home on Pollock's Path sold for HK$2.8 billion in 2017, while a year earlier, 15 Gough Hill Road sold for a then-record HK$2.1 billion. In 2018, House 2 at Mount Nicholson changed hands for HK$1.4 billion, after its neighbour sold for HK$1.16 billion a year earlier, according to Christie's Real Estate.
While those properties are a rarity, Knight Frank's data covers homes considered typical for the area, which in the case of The Peak means an average of 3,000 sq ft (278 square metres). “We're comparing apples with apples,” Martin Wong Shiu-kei, associate director, Greater China research and consultancy, Knight Frank, said of the data.
In terms of capital gain, homes on The Peak rose the least among five districts covered – but Wong says this has not dented its prestige status. Those that can afford to buy do, mindful of the limited supply; those who've managed to hold onto a sufficiently generous expat package rent there for the same reason.