Wharf seeks tenants for HK$1 million-a-month house on The Peak after acquisition spree in Hong Kong's wealthy enclave

Wharf (Holdings) is planning to lease out one of its properties in Hong Kong's exclusive housing neighbourhood on The Peak by tender, which could fetch more than HK$1 million (US$129,000) in monthly rent based on indicative market rates.

The 10,804 square feet house on 11 Plantation Road, one of the seven homes sharing the same address, requires potential tenants to lodge a HK$1 million deposit, according to the bidding terms. The tender closes at 6pm local time on Wednesday.

While the asking price was not disclosed, the property could be rented out at about HK$99 per sq ft, using the asking price for a 4,029-sq ft home on 46 Plantation Road listed on online property portal Spacious.

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"Many [wealthy] people would like to rent [at The Peak] due to its proximity to Central," said Victoria Allan, founder and managing director of real estate agency Habitat Property. "But more importantly, places that have an outdoor space and easy access to hiking trails and parks."

Wharf, a developer controlled by the family of billionaire Peter Woo Kwong-ching, has been scooping up assets on The Peak - whose residents include Macau casino heiress Pansy Ho, Chinese billionaire Jack Ma, who is also the owner of this newspaper - seen as a bet on market recovery as the government seeks to restore public order and revive the economy from a record slump.

Those purchases included a record HK$7.25 billion outlay, or HK$50,010 per sq ft, for two plots on 11 Mansfield Road in a government land sale early this month. The group also spent HK$12 billion to snatch the tender for 2, 4, 6 and 8 Mansfield Road in December.

Luxury home prices in Hong Kong dropped 1 per cent in 2019, according to property consultancy JLL as the city reeled from its worst political crisis. The segment saw a further decline in prices last year as the coronavirus pandemic wreaked havoc on the global economy.

Transactions of luxury homes in Hong Kong declined 37 per cent to 127 in December from 203 in October, with the drop mostly felt in the HK$20 million to HK$50 million bracket, according to Savills. Prices in the segment dropped by 0.9 per cent to 2.1 per cent. Border closures hindered potential buyers and capital inflows to the segment, the property consultancy added.

A 4,289 sq ft flat on Mount Nicholson was rented out for HK$500,000 a month or HK$117 per sq ft in 2018, which shows current luxury homes listed for rent on property portals are cheaper compared to three years ago.

The interior of the house, which commands views of mountains and the Victoria Harbour. Photo: Handout alt=The interior of the house, which commands views of mountains and the Victoria Harbour. Photo: Handout

Three of the seven homes on 11 Plantation Road, each measuring 6,000 to 10,000 sq ft with commanding views of mountains and the Victoria Harbour, have been earmarked for lease, according to Wharf.

The unit on tender has a 2,333 sq ft backyard and a 2,700 sq ft basement. Tenants are assured of tight security, including glass-breakage and infrared sensors.

The house could fetch between HK$800,000 and HK$1 million in rent, according to Allan of Habitat Property. It would appeal to wealthy mainland Chinese, heads of listed technology companies or hedge fund managers, she added.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved.