23rd March 2023 – (Hong Kong) A buyer from mainland China has offered HK$1.2 billion (US$153 million) for a four-story mansion in Hong Kong’s Peak area, setting a new Asia record for price per square foot. If the deal goes through, it would surpass the previous record of HK$140,800 set in 2021 for an apartment at the Mount Nicholson project. This development marks a significant milestone for Hong Kong’s property market, which has rebounded after reopening to the world.
The property, located at No. 45 Barker Road, has a total floor area of 4,700 square feet (437 square meters). The mansion was originally owned by Hong Kong businessman Haking Wong, and the new development retains some of the heritage features from the original building. CSI Properties Ltd. acquired the site for HK$200 million in 2011 and paid another HK$103.2 million in land premium four years later when it was rebuilt.
Meanwhile, the developer spent 10 years adding to the property, expanding the land area from 7,766 square feet to 9,367 square feet. Previously inaccessible by car, the developer worked with the government to acquire additional land and has now made space for eight cars to park.
The project at 45 Barker Road, previously known as “47 Barker Road,” was originally a historic mansion called “Villa Blanca” built in the 1930s and styled after Spanish villas. It was purchased by Hong Kong industrialist Haking Wong for HK$1.8 million in 1978 and was classified as a Grade II historic building in Hong Kong in 2010.
In January 2011, a developer acquired Villa Blanca from the Wong family for HK$200 million and immediately applied to the Town Planning Board to redevelop the property into a 4-storey low-density residential project, preserving only the original exterior wall facing the street and installing historical interpretation signage. The project was eventually approved by the Town Planning Board and the Buildings Department in 2014.
Hong Kong’s Peak area is a luxurious residential neighbourhood where many of the city’s wealthiest tycoons own homes. Billionaires Lee Shau Kee and Jack Ma are among those who own mansions in the area. The surge in demand for property in the Peak area follows the Hong Kong government’s decision to cut quarantine requirements and lift the mask rule, which has led to an influx of wealthy individuals to the city.
Real estate prices in Hong Kong experienced a slump in 2022 due to rising interest rates and a weakening economy. However, despite this, the city remained the world’s least affordable housing market, a title it has held for over a decade, according to a recent report by Demographia. The Hong Kong government’s efforts to boost the city’s attractiveness as a business centre by hosting events such as Art Basel and a wealth summit for global family offices have also helped to stimulate demand in the property market.
The buyer of the mansion in the Peak area has not been identified, and CSI Properties Ltd. has not commented on the offer. Nevertheless, the deal signals renewed confidence in Hong Kong’s property market and highlights the continued appeal of the city’s most prestigious neighbourhoods. With the recent easing of travel restrictions and the influx of wealthy individuals, Hong Kong’s property market is poised for further growth in the coming years.