Steaming Ahead

March 6, 2007

Southside and Midlevels on Hong Kong Island. demand for large units of over 2,000 square feet has long outstripped supply, which over the years has seen no appreciable increase. Gaining particular favour lately are the free-standing single houses, which have seen dwindling supplies over the past three decades largely due to redevelopment into townhouses and the fact that there is no new supply at all.

Recent sales of houses include Island Grove for HK$148 million, 11 Henderson Road for HK$145 million, 39 Deep Water Bay Road for HK$110 million, 6 South Bay Road for HK$168 million and 3-5 Gough Hill Road for HK$170 million. With more and more people joining the ranks of billionaires, it is inevitable that demand for and the property prices of single houses will rocket up into the stratosphere. Despite the lacklustre mass residential market. luxury property market is slated for another rosy year.

The high end leasing market is equally buoyant, as economic growth has spurred expansion in the service industries and brought about a consequent surge in demand as more senior executives are pouring into Hong Kong. Properties with rental price tags exceeding HK$200,000 per month have met with enough tenants for the first time in seven years. Demand is not only generated from the high-heeled expatriate executives but also from local wealthy families, who have turned to leasing luxury properties after failing to find a suitable home to buy.

By Michele Tang