Set high above Hong Kong with stunning Victoria Harbour views, the Peak is prestigious and private. Of course, such secluded luxury comes at a jaw-dropping price, making this Hong Kong’s most exclusive residential neighborhood.
Boundaries
"The Peak is generally recognized as the area surrounding Victoria Peak, the highest point on Hong Kong Island. The neighborhood is bound by Barker Road on the North, Lung Fu Shan on the West, Mount Kellett Road on the South, and the intersection of Stubbs Road and Peak Road on the East," says Bruce H. Li, manager, investments and commercial, at Asia Pacific Properties.
Price range
Every square foot counts in this populated city, and only homes measuring at 1,700 square feet or more are defined as luxury properties. The average luxury home in Hong Kong is currently valued at HK$38 million (US$4.9 million), but the Peak surpasses that.
According to Mr. Li, the average price for an apartment ranges from HK$60 million to HK$100 million (US$7.7 million to US$13 million), but there are a few entry level units available at around HK$40 million (US$5 million). The price for a townhouse in a complex begins at HK$150 million (US$20 million), and a detached home would cost from HK$300 million to HK$800 million (US$40 million to US$100 million). In the past two years, Mr. Li says, properties were sold at record-breaking prices: the site of Ho Tung Gardens was sold at HK$5.1 billion (US$655 million) for redevelopment, and a new development at 15 Gough Hill Road was sold at HK$220,000 (US$28,000) per square foot, or HK$2.1 billion (US$270 million).
Housing stock
Exceptional architecture and design can be expected too. "The majority of the homes are traditional colonial in style with Chinese influences," says Zackary Wright, senior vice president of Christie’s International Real Estate. "These homes tend to date back centuries, but many have undergone renovations in recent years. Newer homes usually display a modern, yet classic design." However, Mr. Wright adds, there are some examples that push the boundaries, like Frank Gehry’s Opus development, which is one of the most striking buildings on The Peak. The final apartment at Opus Hong Kong sold last year for HK$509.6 million (US$66 million), making it the most expensive apartment in Asia, according to Mr. Wright.
Browse:Tour Homes Available in The Peak Neighborhood
What makes it unique
"Privacy and the view from The Peak make it sought-after," notes Mr. Wright. "There is a long winding road up to The Peak and many homes are hidden behind trees, which impart a sense of remoteness, even though this is a large and exclusive community in the hills. Residents want a view that will be the envy of friends, and the stunning vista of Victoria Harbour from The Peak captures the imagination like nothing else in the city."
Luxe amenities in the neighborhood
The basics — grocery stores, a hospital, private international schools — are found in the area but, as Mr. Li points out, luxe amenities are not the critical feature in this neighborhood. The Peak, he says, is principally a residential area, with the exception of tourist destinations at the Peak Tram and Victoria Peak Lookout (built on the former site of the Governor’s summer residence, and now a popular destination to enjoy the harbor views).
It’s just a 20-minute drive to luxury shops, Michelin-starred restaurants and five-star hotels in the Central Business District.
Who lives there now
Residents here are the same people topping the Forbes richest people in Hong Kong lists, so brush up on business speak to make small talk with CEOs, expat professionals, high-net worth entrepreneurs and government officials.
As for the next wave of neighbors, Mr. Li says, "In the last five years, there has been a quiet wave of tycoons from mainland China buying properties on the Peak and setting record transaction prices. It is estimated that a total of HK$4 billion (US$514 million) worth of properties on the Peak were purchased by mainland Chinese tycoons in 2016."
Notable residents
"The Head of the Court in Hong Kong is known to reside in The Peak," says Mr. Wright. "Jack Ma, chairman of Alibaba Group, is rumored to live here, as well as a number of ‘local money’ millionaires like James Tien, the chairman of Manhattan Holdings."
Outlook
"The resale outlook is positive in the medium and long term as there will not be any new supply, except when a redevelopment of an existing property occurs," says Mr. Li. "Most current owners only would sell at a premium. Demand is expected to continue assuming Hong Kong remains the major financial hub in the region, and China continues to produce billionaires at the fastest pace in the world."
More:Hong Kong Luxury Market Rebounded Strongly in Second Quarter of 2016
Though Mr. Wright agrees that the overall outlook is promising, he acknowledges a slight dip. "The resale market has experienced a six-month decline," he says. "The same properties are on the market, but sellers are unlikely to lose any money due to the lack of homes on the market. Any neighborhood which has a natural setting with limited supply is going to command the attention of wealthy locals and international investors, and The Peak is one such area."