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News Release

Hong Kong

Prime Residential Property at 20 Peak Road for Sale by Public Tender


Jones Lang LaSalle has been appointed as the sole agent to conduct a public tender in Hong Kong and China for the sale of the prime property at 20 Peak Road (The Property).  The tender will close at 12 Noon on 15 September 2010 (Wednesday).

Stretching a site area of approximately 25,764 sq ft, The Property is zoned for ‘Residential (C) 2’ purpose according to the Peak Area Outline Zoning Plan No. S/H14/9. Based on the permitted plot ratio of 0.5, the future development to be erected on the site can cover a maximum total GFA of approximately 12,882 sq ft. Currently standing on the site is a two-storey detached house completed in 1948. The house covers a net area of about 6,020 sq ft.

Overlooking Victoria Harbour and surrounded by lush greenery, 20 Peak Road enjoys absolute privacy as an ideal and unique home address.  In addition, Peak Road is one of the few locations on the Peak having a two-way driveway while enjoying panoramic views of Victoria Harbour.  With its strategic location below the fog line on the Peak, the property's rarity and superiority are further enhanced.

In fact, the Peak has been a popular home address among celebrities for about 100 years, with many business leaders, senior government officials and consul generals having made their homes there. The Peak has been regarded as one of the most expensive luxury residential areas across Asia.  In 2007, three luxury residences on the Peak were included in Asia’s ten most expensive homes for Forbes Magazine's World's Most Expensive Homes list.

‘The supply of luxury residential properties on the Peak has been very limited.  Over the past five years, no house lot along Peak Road has been put up for sale thus far.  20 Peak Road represents the only site available for sale within the area. This year, we have seen many prime residential sites transacted at record-high prices.  For instance, the prime site at Mount Nicholson Road, which was recently auctioned by the government, was sold for an Accommodation Value of $32,014 per sq ft (Table 1), breaking the record of government land sales in recent years,’ said Joseph Tsang, Jones Lang LaSalle's International Director and Head of Capital Markets, Hong Kong.
 
Table 1
Date of
Transaction 
Name of
the property 
Site Area
(sq ft) 
Max GFA
(sq ft)
Transacted Price
Accommodation Value
Jun 2010
6–16 Peel Rise 
35,580  
17,790  
$1,098,000,000 
$61,720
Jun 2010 
35 Barker Road 
53,350  
26,675  
$1,820,000,000 
$68,229
Jul 2010 
Mt. Nicholson Road
250,930
324,862 
$10,400,000,000 
$32,014

‘According to Jones Lang LaSalle Research, the capital values for houses on the Peak escalated by about 2.3 times over the last ten years, which is significantly higher than the growth of prices for apartment building units. The strongest growth was seen in the capital values for single-lot properties, which could increase by five-folds or more. Taking 6–16 Peel Rise as an example, the site, which was previously sold for $2.07 million in 2001, was recently transacted for about $1,100 million this year—the property's value appreciated by more than five times.  Under the current near-zero supply for single-lot properties on the Peak, we expect the prices for properties within the area to keep rising, supported by the strong demand from the wealthy tycoons in Hong Kong and Mainland China alike,’ says Tsang.
 
‘A number of prospective buyers from Mainland China have expressed their interest in acquiring 20 Peak Road.  We believe that the property will become the focus of the market and attract intensive biddings,’ adds Tsang.