As Hong Kong's luxury property prices continue to break records, detached town houses have been performing particularly well.
According to Midland Realty, there were 86 transactions worth more than HK$10 million for detached houses last month, a third more than the 64 cases in April. Most sales were in the New Territories, with about half in Tai Po. On Hong Kong Island, there were eight transactions, mainly in Island South.
As for the first quarter, according to Centaline Property Agency, there were 21 transactions involving houses on The Peak and in Island South. So supply is tight in those areas.
While a small number of owners are selling their properties, it doesn't mean they have a bearish market outlook, says Louis Ho, Centaline's general manager for Greater China luxury property.
'Vacancy rates are low and tenants of luxury properties are facing rental increases of 20 to 30 per cent and, in some instances, as much as 40 per cent at the top end of the market,' says Renu Budhrani, executive director of Knight Frank. 'Demand is increasing from end-users and local and international investors.'
Prime locations are The Peak and Island South, followed by Jardine's Lookout and Pok Fu Lam, where houses are predominantly owner-occupied.
