RESIDENTIAL PROPERTY | Staff Reporter, Hong Kong

Luxury residential segment gains momentum in May

Quantitative easing in most regions supports luxury property prices.

Hong Kong’s luxury residential market gained momentum in May despite a contracting economy as quantitative easing started to take effect, according to JLL’s Residential Sales Market Monitor.

Several transactions were made in the primary sales market, including an apartment in ‘Duke’s Place’ at Jardine’s Lookout, which was sold for $222.1m, whilst a villa at ‘Mont Rouge’ on Beacon Hill changed hands for $370m. This translates to $78,000 per sqft (psf) and $71,873 psf, respectively.

In the land sales market, Tai Cheung Holdings secured a residential development site in Ap Lei Chau via government tender for $1.33b, or $15,097 psf, nearing the upper limits of the pre-tender expectations.

JLL believes that the recovery in market sentiment and activities is a result of the significant monetary easing in most regions and the stabilisation of COVID-19 across Greater China. Figures show that in the 2009 Global Financial Crisis, capital values of luxury residential properties have risen by 139%, which in large part was due to quantitative easing measures that took place over the years after.

JLL Hong Kong’s senior director of capital markets Henry Mok notes that developers are maintaining a constructive view on the outlook for the high-end residential market in Hong Kong as the sector has gained momentum. Luxury residential projects are also expected to be launched shortly, including Central Peak in Mid-Levels East and 21 Borrett Road in Mid-Levels Central.

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