Hong Kong’s high-end property sales boom despite protests and pandemic

Hong Kong has actually been rocked by demonstrations and a pandemic that has actually practically shut the city off from the world however high-end residential or commercial property offers are flourishing, buoyed by mainland business owners.

2 flats were offered today by Wheelock, the realty group of billionaire Peter Woo, on the city’s popular Peak for HK$1.2bn (US$154m), setting an Asian record for rate per square foot. The sale followed a different offer by residential or commercial property group Wharf Holdings to rent a high-end house for HK$1.35m a month, another record for the city.

The residential or commercial property deals come in spite of Hong Kong dealing with a series of difficulties that have actually raised concerns about its potential customers as a worldwide monetary centre.

Beijing secured down on the city following pro-democracy demonstrations in 2019 by enforcing a hard nationwide security law to restrict dissent.

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Those modifications along with a few of the world’s strictest pandemic border limitations, with compulsory quarantine steps of approximately 3 weeks for anybody taking a trip to the city, have actually led lots of locals to leave. Hong Kong tape-recorded a 1.2 percent decrease in locals for very first half of this year, the 3rd successive fall over a six-month duration after more than a years of development.

However property costs have actually been steadied by a persistent absence of land, which has actually been partially blamed on residential or commercial property designers hoarding area and policy bad moves.

Henderson Land, the residential or commercial property group managed by Lee Shau Kee, among Asia’s wealthiest males, stated this month it would invest HK$63bn on a record-setting 50-year tender to establish a waterside website in main Hong Kong.

“If you think of the sort of challenges Hong Kong has faced over the past two years, from US-China tensions, to social unrest, to the pandemic and yet the residential market has proved to be pretty resilient and we have continued to see deals be inked at the top end,” stated Simon Smith, head of Asia-Pacific research study at Savills, the residential or commercial property business. “The market here always seems to be bullet proof.”

Nelson Wong, higher China head of research study at JLL Hong Kong, the business realty business, stated the real estate scarcity had actually balanced out the effect of the population decrease.

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“The demand for housing is still not being sufficiently addressed by what is available out there,” he stated.

Wong included that the variety of property deals of more than HK$100m was greater than in 2018.

The identity of the purchaser of the Peak flat has actually not been revealed, however Smith stated the high-end market was progressively buoyed by mainland business owners. A number of them have organization throughout the border in southern China however wish to reside in Hong Kong.

Jobber Wiki author Frank Long contributed to this report.