A 4120-square-foot home located in Repulse Bay is officially the most expensive home per square foot, placing Hong Kong above previous contenders in Bel Air, Monaco, and London. Located at 110 Repulse Bay Road, this Renaissance-style property has shattered the global record for most expensive house per square-foot
There’s a new record holder in town. Hong Kong, notorious for its ridiculously high property prices, also now holds the title for the most expensive home per-square-foot. The record breaking home at 110 Repulse Bay Road is asking for HKD$860,000,000 , indicating a price of HKD$208,738 per square-foot.
Perched on a lush, green hillside, the beautiful 4-bedroom home has a breathtaking view of the waterfront, overlooking the entire Repulse Bay. The luxury home has a rare Italian-Renaissance styled exterior and equal exquisite interior design. The home is flanked by equally luxe mansion, all commanding a ridiculously high price on the housing market today.
Comparatively, the most expensive home in the world, the Antilla is located in India. The twenty-seven story building, despite being extremely lavish, is no where close to the Repulse Bay property. The 400,000 square home only goes for around for a mere $9,600HKD per square-foot.
The new titleholder for the most expensive home-- previously held by homes in London and Hollywood-- signals a change in the property landscape in the world. According to government sale logs for 2016, the average 430-sq.-ft. home in the Kowloon district goes for $4.8 million HKD. For that price, you can buy a 17th-century French castle in Lyon three hundred times that size.
So how did Hong Kong get there? The city’s tricky geographic landscape coupled with its government policy has created an environment where property prices are forced to rise exponentially every year. Due to its hilly landscape, only 7 percent of the land accounts for residential space (over 40% of the city consists are country parks). In addition, Hong Kong’s government owns all the land in Hong Kong and sells it off in a highest bidder setting to developers for leases of fifty years. The combination of these two factors pushed property prices up every single year especially in the main business districts forcing companies to look in other districts.
These two causes are unlikely to go away anytime soon. The geographic landscape combined with Hong Kong’s rain heavy climate makes development on the hills too dangerous to pursue with current architectural technology. Also the government declared “Country Parks” are off limits for any sort of development. The biggest issue of ownership of the Hong Kong land by the government is also not likely to alter in the future. The leasing revenue raised every year is an integral part of Hong Kong’s economy--it is responsible not only for keeping income tax rates low but also for the absence of Value-Added Taxes (VAT) in Hong Kong. Reversal of the land ownership policies in Hong Kong would mean a complete uprooting of the economical structure of the city
The real problem is that these complications go further than just residential spaces. Office and commercial space has also becoming notoriously high in the recent years. The average square-foot of office space is becoming unaffordable for Hong Kong Startups and Small-Medium Enterprises (SMEs). With the currently booming startup culture in Hong Kong, the lack of reasonably priced office space is becoming more and more of a crisis.
Property is now the most important asset for many Hong Kong residents and business alike. The expensive prices commanded by land in today’s economy will most likely become further exasperated in the future and change the landscape of Hong Kong’s way of life.
Now is the time to look for new solutions to combat these high rising prices. Currently, architects such as Gary Chang are creating micro-apartments, and companies like Quikspaces are creating flexible shared office spaces for businesses. With each square-foot of space costing more and more each month, Hong Kong residents must look for smart alternatives. Reassessing the way we look at the classic “apartment flat” and “workspace” is no longer an option: Innovation is now a must.
A beautifully furnished space for 3 people in the middle of the Sheung Wan District. Available for rent
Quikspaces is currently the only online marketplace platform in Hong Kong offering shared office spaces. Companies with unused space or extra desks can rent them out to other companies to use. The space rental is a smart, flexible, and affordable solution to today’s office space crisis. Get started with us today.
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