A new record has been set in the Hong Kong real estate market, as a luxury apartment recently sold for a whopping $59 million (HK$459.4 million). According to The News, the property in question is a 3,378 square-foot penthouse featuring five bedrooms located in Mid-Levels neighbourhood. Given its expensive price tag, each square foot cost approximately $17,55.
As of now, the buyer hasn’t been identified by the media. But for anyone wanting to get a sneak peak of the expensive apartment, whether in-person of through Google maps, its address is being reported as 21 Borrett Road, Barron’s notes. It’s part of a newly built luxury apartment tower, helping to explain the high price tag.
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While Hong Kong is currently experiencing a recession, brought on by the ongoing coronavirus pandemic as well as continuing political instability, the high-end real estate market continues to boom. The headline-making property is the most expensive flat to be sold in Hong Kong in years, explaining the international headlines. The News notes this is testament to the inequality faced by the city – while luxury homes continue to be bought and sold at soaring rates, unemployment is the highest it’s been in 16 years at 6.6%.
Need more evidence the real estate market is booming in Hong Kong? The previous record for the highest luxury sale was set only a week before the most recent buyer earned the title. Only a week ago, an association paid $935.2 million for a piece of property located on The Peak, a mountain located on Hong Kong island associated with being one of the most prestigious neighborhoods around.
While the $935.2 million piece of lad may have featured a higher price tag, the price per square foot is still lower than the most recent apartment sale that went for $59 million. Whereas the piece of land costs $6,545 per square foot, Business Insider confirms, the apartment was almost triple that at $17,55, as has been mentioned.
The News notes that a report released in 2019 by CBRE real estate firm acknowledged Hong Kong is the most expensive city in terms of residential properties. The average home costs $2,091 per square foot. Similarly, the average property goes for $1.2 million on the market, reinforcing the stark inequality noted in the city, which has fuelled political instability in recent years.
Sources: The News, Business Insiders, Barron’s
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