Strong demand and limited supply drive top-end prices higher

Leasing prospects for superdeluxe residences remain positive, despite dampened market sentiment and sluggish trading activity.

Property consultants say there is continued interest in the leasing of top-end residences, as wealthy tenants chase a limited stock of large homes in prestigious locations.

Clara Chu, director of residential leasing at Colliers International, says the rental outlook for superdeluxe and large residences remains optimistic due to strong demand and limited supply.

"We continue to see solid leasing demand from high-budget tenants, especially the wealthy mainland businessmen," she says. "These tenants are looking for really big houses or apartments, usually of more than 3,000 sq ft, but there is limited supply. Therefore, we expect the leasing sector to be more resilient even if the overall residential market softens."

The strong market can be shown by this year's major leasing deals. One of the most notable was the lease in August of a 6,000 sqft duplex at Opus Hong Kong in Stubbs Road of about HK$850,000 a month, or about HK$130 per sqft. A 7,000 sqft house at Mount Kellett Road on The Peak went for a monthly rental of HK$800,000 recently.

In Mid-Levels, a 5,453 sqft duplex at Dynasty Court went for HK$298,000 per month. Kerry Properties is offering luxurious apartments in Tavistock at Tregunter Path for lease. A 8,210 sqft penthouse with a terrace is available for HK$500,000 a month.