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.
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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
“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.
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The construction sector is roaring back to life in some Australian states while others languish in the doldrums
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The home building market is on the rebound as building approvals rise, new data reveals.
Information from the Australian Bureau of Statistics shows that the total number of dwellings approved in August was up 7 percent seasonally adjusted, with apartments leading the way.
Private sector house approvals gained 5.8 percent in August while private sector residences excluding houses were up 9.4 percent. This follows on from a decrease of 14.6 percent in July and indicates a solid recovery in the Australian construction sector as the end of the year approaches.
Approvals for total dwellings were strongest in the two largest states, with Victoria recording a rise of 22.2 percent and NSW 12.5 percent. Western Australia also saw a significant rise of 12.3 percent.
In Queensland, the results were less positive for the sector, with total dwelling approvals falling by -26.9 percent. Tasmania also experienced a drop in approvals in August, down -10.1 percent and South Australia -6.9 percent.
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