An ultra-luxury residence in Hong Kong has been rented out for HK$1.1 million ($140,500) a month, a sign that some high-end transactions are still happening in the city during a broader property downturn.
(Bloomberg) — An ultra-luxury residence in Hong Kong has been rented out for HK$1.1 million ($140,500) a month, a sign that some high-end transactions are still happening in the city during a broader property downturn.
The unit leased at No. 11 Plantation Road is about 11,000 square feet (1,000 square meters), according to a person with knowledge of the matter, who asked not to be named discussing private information. The property is owned by Wharf Holdings Ltd.
While the price is lower than the record-breaking HK$1.35 million that the unit was previously rented for in 2021, it still ranks among the most expensive rental homes in one of the priciest property markets worldwide.
Read more: Hong Kong Luxury House Sets Record With $2.5 Million Yearly Rent
A representative for Wharf Holdings wasn’t immediately able to comment.
Hong Kong’s residential property market is in a prolonged downturn as high interest rates and macroeconomic woes deter buyers. The luxury segment has also suffered, with some owners of high-end properties having to sell at a steep discount compared with pre-pandemic times.
There are bright spots, however, as some buyers take advantage of the repricing of assets and the benefits of diversification, according to the Knight Frank global super-prime intelligence report published last month.
“With greater travel expected in the remainder of the year, there is potential for increased demand from Chinese mainland buyers for luxury residential properties,” said Ho-Pin Tung, head of Knight Frank’s private office in Hong Kong. “However, the main constraint lies in the limited supply of best-in-class super-prime homes.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.