“Despite Covid-19, the Hong Kong luxury residential market has remained resilient, with the overall prices of luxury homes only [dropping] 4.8 per cent year on year,” says Martin Wong, associate director, Research & Consultancy (Greater China) at leading real estate agency consultancy Knight Frank. “Instead, Covid-19 has slowed down the transaction volume. In The Peak and Mid-Levels [areas], residential sales transactions with consideration at HK$30 million or above dropped 58 per cent year on year in the first 10 months of the year.”

Knight Frank reports that despite a slight decline in overall residential prices in July (though luxury volume at HK$20 million and above surged, according to leading property agent Savills, to the highest level they have seen in 2020, before falling back in August), incentives offered by developers such as discounted mortgage plans and low interest rates have supported buying sentiment. For example, a 2,846 sq ft duplex unit at Dukes Place in Jardine’s Lookout was sold at a unit price of HK$70,274, for a total consideration of HK$200 million, while an apartment at 8 Deep Water Bay Drive was sold for HK$180 million for a unit price of HK$62,688.

Savills stated in October that luxury apartment prices on Hong Kong Island have fallen by 8.6 per cent from their previous peak in the second quarter of 2019, and are expected to slip another three to five per cent by the end of 2020. “Though market sentiment was mixed at best, luxury prices on Hong Kong Island and in Kowloon declined more moderately by 0.1 per cent and 0.5 per cent respectively in Q3, as only a handful of distressed assets changed hands,” they added. Weak economic growth, rising unemployment figures, developers accelerating launches and luxury prices coming under further pressure are all variables that will impact 2021 luxury property prices. However, according to Savills, “Low interest rates and ample liquidity will provide some market support.” Savills also predicts that in 2021, luxury flat prices on Hong Kong Island may further decline by a further possible five to 10 per cent.

There are, however, some luxury real estate products that will always garner attention, such as the Mount Nicholson development on The Peak, one of the most prestigious addresses in Hong Kong. It is a gated community of 19 unique detached houses with saleable areas of 6,326-9,950 sq ft, according to Wheelock, and 48 apartment units with saleable areas of 4,186-4,601 sq ft. Their chief assets – unparalleled privacy and truly spectacular views over Victoria Harbour – are complemented by a team of world-leading architects and designers, such as Yabu Pushelberg and Robert A.M. Stern, to name just a couple.

An interesting feature of the premises is that the property employs a team of professional guards, trained by former Special Air Service (SAS) officers, says Wheelock, and supported by a top-level, three-layered security system to protect the development, both inside and out.

With social distancing, there is an increased emphasis on wholesome family time at home. For some, this translates into having the space for quality living. One of The Peak’s more expensive properties currently on the market is 7 Pollock’s Path.

Placed on List Sotheby’s International Realty at HK$886 million, this 3,649 sq ft family home comes with four bedrooms and en suite bathrooms. The master suite also includes a walk-in wardrobe. Beyond the spacious living areas, the outdoor space is nothing less than spectacular. Unobstructed, sweeping views over Victoria Harbour, a rooftop, pool and several terraces complete the residence.

Another opulent home in the same price bracket is 28 Barker Road, listed by Savills. At HK$868 million, the property exudes traditional refinement. With five bedrooms, a car park, pool, roof terrace and garden, the house sits at the end of a long driveway. Public and light bus services are available from Peak Road, and the residence is only a 10-minute walk from The Peak Tram.

Prestigious addresses inevitably come with a hefty price tag. Savills says that a quick comparison of average house prices by district reveals the substantial price differential between The Peak, with an indicative price range of HK$55,000 to HK$105,000 per square foot, compared to, for example, Sai Kung, where typical average prices range from HK$11,800 to HK$17,500 per square foot – around a fifth of prices on The Peak.

If you want to stay in the area but don’t want to shell out almost HK$900 million on a big family home, Mid-Levels East may be a good option.

Landscope Christie’s Villa Monte Rosa is a seven-bedroom simplex with two en suites and five bathrooms, with a saleable area of 5,664 sq ft. It includes a big balcony, two maid’s rooms and two car parks. It may lack some modern-day bells and whistles but offers the enviable commodity of space at a price tag of HK$230 million – a third of The Peak’s high-end offerings – for more square footage.

Savills’ Simon Smith, senior director of research and consultancy, says: “While luxury sentiment remained jittery in Q3, the mass market was in a more buoyant mood with reviving interest in the secondary market partly due to lower down payment requirements.”

The agency further notes that the full impact of the pandemic may be felt towards the end of 2020 if the Hong Kong government cracks down on subsidies and corporate unemployment continues to rise.

Smith adds: “Despite some bright spots, it looks likely that the ride to the end of this year will be bumpy.”