HONG KONG has topped the list as the most expensive global ultra-prime real estate market for the world’s super rich, according to an international consultancy firm.
New research by Knight Frank found that high nett worth property buyers spent the most in the island-city for properties worth US$25 million or more.
The average price paid for the upscale properties, according to Knight Frank’s Global Ultra Prime Market 2019 assessment, was US$64 million over the past three years.
The former British colony attracts a large number of expatriates to live and work owing to its reputation as an international finance centre and in the 12 months to August 2018, Hong Kong was home to 47 transactions – the highest of any city.
“With attractive education options, low taxation and an established and strong legal system, as well as a relatively stable political environment – the city offers an attractive environment for wealthy individuals,” the report said.
“Investment in residential property is attractive due to relatively low property taxation, no capital gains tax and no inheritance tax.”
Knight Frank pointed out that most properties that have transacted above US$25 million are larger houses in luxury areas such as The Peak, most notably Mount Nicholson, or in Island South.
“Properties here have views of Victoria Harbour as well as benefiting from garden space, swimming pools, and many with gym and spa facilities,” it said.
“The largest buyers in this segment are local, yet there is a notable presence of Chinese Mainland buyers.”
Over the past year, the world’s super-rich spent US$6.6 billion collectively on homes worth at least US$25 million.
Knight Frank uses the term ‘Ultra Prime’ for markets that have at least three transactions worth a minimum of US$25 million in each of the last three years.
Behind Hong Kong were New York, which saw 39 ultra-prime deals worth a total of US$1.5 billion and London with 38 transactions worth the same amount.