Penthouse Buyers Pay Premiums In Hong Kong, London, New York
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Penthouse Buyers Pay Premiums In Hong Kong, London, New York

But house hunters will find comparably more space in the aerie in cities like Singapore.

By Liz Lucking
Tue, Aug 3, 2021 10:27amGrey Clock 2 min

Across some of the world’s largest cities, trophy-home hunters can expect to pay the largest premium for the prestige of securing a penthouse in Hong Kong according to a report Monday from Knight Frank.

A top-tier unit in the city comes with a 59% price premium per square foot, the highest surcharge of any of the five top global markets analyzed by the estate agency and property consultant, which compared the cost and size of a penthouse unit to the average of the rest of the units in the same development.

Despite the upcharge, a penthouse buyer in Hong Kong will only get a footprint that’s 48% larger than their less-exclusive neighbours, the smallest size premium of the cities analyzed. 

“Exclusivity and privacy underpin values, and local factors such as the configuration of developments and sales technique mean [price] premiums in various cities can differ by as much as 50%,” Flora Harley, partner of residential research at Knight Frank, said in the report.

Penthouse price and size premiums

Knight Frank

“What we have noticed is that the larger the space differential, the smaller the price premium,” Ms. Harley said. “For example, of the cities analyzed, Singapore penthouses command the smallest premium, with an average of 7%, yet they are, on average, almost three times the size of their counterparts—in Hong Kong penthouses are only around 50% larger.”

Penthouses in London came with the second-most significant price upcharge at 43% and New York City ranked third at 41%, according to the data,

All three cities ranked above the global average penthouse price premium of 35% per square foot. Typically, penthouses globally will be an average of 129% larger than their counterparts.

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: August 2, 2021.


Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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Amid looming rate rises, there are reasons to be cheerful as mortgage holders head into 2023

Mon, Feb 6, 2023 2 min

Mortgage holders should brace themselves for more pain as the Reserve Bank of Australia board prepares to meet tomorrow for the first time this year.

Most economists and the major banks are predicting a rise of 25 basis points will be announced, although the Commonwealth Bank suggests that the RBA may take the unusual step of a 40 basis point rise to bring the interest rate up to a more conventional 3.5 percent. This would allow the RBA to step back from further rate rises for the next few months as it assesses the impact of tightening monetary policy on the economy.

The decision by the RBA board to make consecutive rate rises since April last year is an attempt to wrestle inflation down to a more manageable 3 or 4 percent. The Australian Bureau of Statistics reports that the inflation rate rose to 7.8 percent over the December quarter, the highest it has been since 1990, reflected in higher prices for food, fuel and construction.

Higher interest rates have coincided with falling home values, which Ray White chief economist Nerida Conisbee says are down 6.1 percent in capital cities since peaking in March 2022. The pain has been greatest in Sydney, where prices have dropped 10.8 percent since February last year. Melbourne and Canberra recorded similar, albeit smaller falls, while capitals like Adelaide, which saw property prices fall 1.8 percent, are less affected.

Although prices may continue to decline, Ms Conisbee (below) said there are signs the pace is slowing and that inflation has peaked.

“December inflation came in at 7.8 per cent with construction, travel and electricity costs being the biggest drivers. It is likely that we are now at peak,” Ms Conisbee said. 

“Many of the drivers of high prices are starting to be resolved. Shipping costs are now down almost 90 per cent from their October 2021 peak (as measured by the Baltic Dry Index), while crude oil prices have almost halved from March 2022. China is back open and international migration has started up again. 

“Even construction costs look like they are close to plateau. Importantly, US inflation has pulled back from its peak of 9.1 per cent in June to 6.5 per cent in December, with many of the drivers of inflation in this country similar to Australia.”


Rocket, the parent of Quicken Loans, has surged 28% this week.

Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual

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