Habitat Insights: The Peak - a buoyant start to 2021
Quarter 1 2021 Overview
The 1st Q 2021 has seen a distinct upturn in activity in the prime Sales market. Transactions on The Peak have been particularly buoyant, with 3 key sales at Wheelock’s new development 77 Peak Road reportedly at $598M ($80,000/sf), $551M ($87,000/sf) and $558M ($92,000/sf), as well as sales in the upmarket complexes at 56 Peak Road & 59 Plantation Road. Other notable sales highlights have been at Central Peak, Sun Hung Kai’s recently released project on Stubbs Road, which has recorded several strong sales at up to $89,000/sf and Cheung Kong’s 21 Borrett Road just set a record deal at $459m or $136,000/sf.
Momentum has been driven by various factors: pent up demand, increased confidence as vaccines are rolled out, low-interest rates and some industry sectors having record years as well as people benefiting from the stock market surge. In summary, there is a lot of liquidity in a low rate environment, so property is not only appealing but investors are now looking for increased diversification.
We are also seeing increased Leasing activity on The Peak as many properties with larger internal space, a 4th bedroom and larger outside spaces are becoming increasingly sought after and commanding a rental premium.
We expect this trend to continue all year, and have already started to see sentiment flow to other price points in the market where we are seeing prices stabilize and transaction activity increase.