The backstory:
- Hong Kong has the most expensive real estate in the world. And, when it comes to the luxury real estate market, the demand is largely supported by mainland Chinese buyers.
- This year, even with Hong Kong seeing some of the world’s strictest social distancing and quarantine measures, including shutting the mainland and Hong Kong borders, Knight Frank predicted that prices for luxury homes in Hong Kong would increase by up to 5% this year.
- And even though sales of luxury homes did fall slightly in the fourth quarter of last year, a home in Mount Nicholson set a new price record in November when it sold for HK$140,800 per square foot, with the buyer said to be an heiress from mainland China.
- This hope of the eventual return of mainland real estate buyers has reportedly helped the sale of several other premium and luxury properties around the city.
The development:
- A premium plot of land in Hong Kong’s Repulse Bay area has attracted a record-high price at a government auction.
- The local real estate developer SEA Holdings Limited beat eight competing bids with a HK$1.19 billion (US$152 million) tender of the premium piece of land. The winning bid was equivalent to over HK$62,355 (US$7,993) per square foot of accommodation, according to a Hong Kong Lands Department announcement on Tuesday.
- The previous record was when Wharf Holdings Ltd. purchased a plot on the Peak for HK$50,011 (US$6,410) per square foot in February of last year.
- SEA was founded by property tycoon Lu Wing Chi, with his son Lambert Lu now chief executive officer.
- The company has some experience with high-end sites on the south side of Hong Kong island. And now, with the purchase of this premium location, it has the right to develop up to 19,055 square feet (1,770 square meters) of luxury housing in Repulse Bay.
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