A two-bedroom flat in a 30-year-old development in Hong Kong’s Quarry Bay district sold for a record HK$10 million (US$1.29 million), 15 times what it would have cost in 1982.
The purchase price for the 657 square foot apartment in Tai Koo Shing translates to HK$17,000 per square foot, the highest for any flat of similar size on record, Apple Daily reported Friday.
The flat has a usable area of 582 sq. ft. or 90 percent and includes the roof area which property experts said could have driven up the price.
In 1982, a similar flat sold for HK$636,000.
Average prices in Tai Koo Shing, a high-traffic residential and commercial development, are HK$13,900 per square foot, up 13 percent from the beginning of the year and more than the average increase of home prices in the whole of Hong Kong.
A new apartment in downtown Hong Kong typically costs between HK$15,000 and HK$20,000 per square foot.
The record price for the Tai Koo Shing flat confirms an upward trend in home prices, making home ownership increasingly out of reach for Hong Kong’s middle class, the report said.
Also, it highlights an emerging practice by developers to include rooftops as extra incentives for homebuyers, enabling them to raise the selling price by at least HK$1 million, according to industry sources.
The buyer of the Tai Koo Shing unit can borrow 50 percent of the purchase price from a bank and pay back the loan over 25 years at HK$22,430 a month, they said.
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