Hong Kong's ultra-luxury residential prices will defy turning point in the broader home market
Ultra-luxury home prices in the city expected to continue trending higher as mainland billionaires seek out overseas assets
Luxury mansion sales in Hong Kong have become detached from the underlying economy, amid a narrow supply of suitable physical properties and growing demand from an influx of mainland Chinese billionaires seeking to secure homes in the city, according to analysts.
At least 82 ultra-luxury homes, or those worth at least HK$314 million (US$40 million), have sold in the city in the last 30 months, according to Mark Fogle, managing director and head of real estate at Baring Private Equity Asia.
“We don't see this [trend] abating,” Fogle said, noting that on average 20 to 30 luxury homes are released on the market yearly.
Historically, sales of these luxury homes in the city have been split evenly between Hong Kong buyers and those from the mainland. In the last four months, however, about 75 per cent of the new purchases were by high-net-worth mainland buyers, Fogle said.
“Hong Kong is totally different from any other market in the world. Just in the last 30 months, there were 82 homes sold that were priced above US$40 million, which is unheard of, and the average price of those homes is US$84 million,” Fogle said.
Mainland billionaire Zhu Xingliang is the owner of Asia's third most expensive flat, located at the exclusive Mount Nicholson development on The Peak.
