Hong Kong Remains World's Most Expensive City For Billionaire Homes

Hong Kong
Hong Kong skyline. Reuters

For billionaires who want to flex their money muscles, buying real estate in Hong Kong is the thing to do, the South China Morning Post reported on a survey by international property consultancy Savills.

The trophy homes in the city go, on average, for $84,400 per square foot, with most homes being 5,200 square feet, the survey claims.

Tokyo comes in second and London places third, the study by Savills found.

Paris, Moscow, New York, Shanghai, Singapore, Mumbai and Sydney also rounded out the top 10 list.

"Billionaire activity has been concentrated on high-end urban centers rather than leisure properties in the surrounding countryside or regional sunbelts,” Yolande Barnes, head of world research at Savills said to SCMP. "This reflects a global preference for urban locations, as these billionaires need to be located in cities where they can do business."

Hong Kong might not have the highest prices for long, however, considering the government has imposed a new measure to slow investment demand, SCMP said.

"There are no big-ticket transactions at all, as cashed-up mainlanders and corporate buyers have retreated from the market after extra stamp duties were imposed on them," Terry Chan, a StatelyHome senior account manager at the Deep Water Bay branch of Centaline Property Agency, told the news site.

"The number of transactions for luxury homes in Deep Water Bay dropped to below 10 a month, with each deal involving just HK$10 million to HK$40 million. Prior to the introduction of the stamp duties, there were 30 to 50 deals a month, each worth more than HK$100 million."

But not everyone shares Chan’s opinion. John Siu, an executive director at valuers Cushman & Wakefield, thinks Hong Kong will remain an alluring place for the world’s richest people to call home.

"Hong Kong's political stability and well-established legal framework create an excellent environment for businesspeople," Siu said. "We will retain our competitive advantage over other cities."

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