Big-ticket sales on The Peak are seen as breathing life back into a luxury property

Big-ticket sales on The Peak are seen as breathing life back into a luxury property sector that has languished in the doldrums even as prices in the mass market deepen their push into record territory.

Some property agents are calling a turning point in the high-end market after two headline-grabbing transactions. The historic Ho Tung Gardens on The Peak sold for a record HK$5.1 billion, Land Registry records revealed on Wednesday. That was disclosed a day after Sun Hung Kai Properties sold House No 7 at Twelve Peaks changed hands for HK$491.69 million, or HK$113,633 per square foot. It became the third most expensive home per square foot in Hong Kong.

Agents now expect more luxury homes to come on to the market. “The more trophy properties that change hands for high prices will certainly improve the buying sentiment,” said Sammy Po, a chief executive at Midland Realty’s residential department.

Po said developers would be encouraged by these transactions to speed up the launch of luxury projects. He believes SHKP may offer the remaining 100 luxury homes at The Cullinan at Kowloon Station and launch another high-end project, in Ho Man Tin, after the lunar new year.

Early this week, Chinachem Group launched 50 units at its Red Hill Peninsula in Tai Tam for sale after leasing them out for 23 years, while Swire Properties relaunched two luxury projects, Arezzo in Mid-Levels West and Mount Parker Residences in Quarry Bay

The Government Property Agency is also seeking to tap the improved sentiment by offering 10 surplus government quarters in luxury areas such as Happy Valley for auction on February 5

A director at Midland Surveyors, said the luxury market had regained momentum after two years of market consolidation. “The strong buying activities in the mass housing sector will spill over to the luxury sector,” he said

In addition, potential buyers of pricey homes have come to terms with the higher stamp duties applied on the purchase of second homes now that the cooling measures have been in place for two years, Lam said.

Chinachem’s first batch of 50 units at Red Hill Peninsula – from 950 to 2,466 sq ft – has been priced from HK$17.43 million to HK$75.44 million. Buyers will receive a discount of up to 10.25 per cent.

At the same time, Swire Properties re-launched the remaining 17 units at Arezzo, sized from 916 to 1,314 sq ft, at HK$26,324 to HK$34,725 per square foot.