Surge in Luxury Property Deals Marks First Quarter of 2024

The first quarter of 2024 has witnessed a significant uptick in luxury property transactions on The Peak and in the Southern District, with a 1.4-fold increase to 22 deals compared to the previous quarter, as reported by Midland Realty. Remarkably, the total turnover has skyrocketed over 13 times, reaching an impressive HK$3.4 billion.

Within this buoyant period, six transactions exceeded the HK$100 million mark, a stark contrast to the last quarter of the previous year, which saw none. Notably, the first quarter boasted the sale of three new luxury homes totaling HK$1.27 billion, complemented by 19 transactions in the secondary market amounting to HK$2.14 billion.

Recently, a sale was finalized for a luxury house at Mount Pokfulam at the staggering price of HK$333.55 million. The project is a joint venture between Wang On Properties (1243) and Kam Wah Property.

In addition, a 1,290-square-foot apartment featuring a rooftop at The Avenue 2 in Wan Chai was leased for HK$115,000 monthly to an expatriate tenant.

The general residential market has continued its vibrant streak. Following the influx of buyers from the secondary market, new developments have been adjusting their strategies by increasing prices and reducing discounts. This adjustment comes as the secondary market has been recording more losses.

CK Asset (1113) has disclosed its fifth price list for Blue Coast in Wong Chuk Hang, releasing 96 units for sale. The average price post-discount has been hiked by 4 percent to HK$25,307 per square foot, from the previous HK$24,289. Since the initial offering, which recorded a five-year low at an average of HK$21,968 per square foot, CK Asset has increased prices four times.

Justin Chiu Kwok-hung, CK Asset's executive director, announced that all apartments in phase 3B of Blue Coast are now on the market. The company is gearing up to launch phase 3C mid-year, with aspirations to maintain selling prices above costs to prevent further losses. The average construction cost for Blue Coast is around HK$28,000 per square foot.

To date, 413 units have been sold, approximately 98 percent of the initial batch, generating HK$7.6 billion for the developers at an average sale price of HK$24,000 per square foot.

In related developments, the OnMantin project, situated above Ho Man Tin MTR station and co-developed by Great Eagle (0041) and MTR Corp (0066), is expected to launch this month. Featuring five towers with a total of 990 homes, the project's anticipated completion is set for March 2025.

Star Properties has introduced 57 units at After The Rain in Yuen Long, with an average discounted price of HK$13,992 per square foot.

K&K Property commenced the tender for 10 luxury apartments at One Stanley, located at 128 Wong Ma Kok Road.

Moreover, Henderson Land (0012) has revised its pricing strategy for Square Mile in Tai Kok Tsui, rolling back discounts previously offered during the Spring Festival.

In a separate update, a two-bedroom apartment in Euston Court on Hong Kong Island has been sold at a loss of HK$1.4 million, with the final sale price of HK$8 million. The seller had purchased the property for HK$9.4 million in March 2023, witnessing a depreciation of approximately 15 percent within a year.