This house was sold for the highest price per sq ft in Kowloon

It was an 11,589-sq-ft horse sold for HK$1 billion.

The Hong Kong residential sector is teetering on the cusp of recovery following the government’s scrapping of the property-cooling measures in late February, according to Knight Frank. 

Transaction volumes captured by the Land Registry turned the corner, recording remarkable growth of 67.2% MoM in March. 

Here’s more from Knight Frank:

Primary and secondary sales surged by 139% and 4.1% MoM, respectively. However, according to the Rating and Valuation Department, overall prices still fell by 1.7% MoM and 12.8% YoY in February, the 10th consecutive monthly decline. 

As highlighted above, primary sales witnessed a significant rebound as developers actively launched new developments at discounted prices to clear inventory. Recent primary sales activities showed momentum with oversubscribed tickets in new launches, such as Season Place in Phase 12 of Lohas Park and Belgravia Place in Cheung Sha Wan. We also noted a resurgence in big-ticket buyers purchasing first-hand units in bulk since the withdrawal of the property curbs, with some purchasing as many as 24 units at a time. 

The luxury residential segment was also energised after the government incentives. The most notable transaction recorded during the month was an 11,589-sq-ft house at Mont Verra, Beacon Hill, which was sold for HK$1 billion (or HK$86,289 per sq ft), setting a record for the highest price per sq ft in Kowloon. The luxury market has seen an influx of high-profile mainland buyers with backgrounds in the financial industry. 

In the leasing market, rents remained stable in February, registering a modest 0.1% MoM drop whilst keeping up a 5.8% YoY gain. Notable luxury rental transactions include:

• 2,094-sq-ft mid-floor Unit A in Harmony, Mid-Levels East, which was leased for HK$200,000 per month (or HK$96 per sq ft); and 

• 3,021-sq-ft house at Three Bays, Stanley was leased for HK$220,000 (HK$66 per sq ft). As sales momentum is poised to improve, more landlords are listing properties for sale. 

Despite buoyant buying sentiment and higher transaction volume since the removal of all property curbs, we believe that in the near term, developers will continue to put new flats up for sale at a discount to compete for buyers. The potential delay in interest rate reductions may also damper market recovery.