Mansion in Hong Kong sold for $140 million: record of the year

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The largest deal in the residential real estate market since the beginning of 2025 was reported by Bloomberg. A mansion at 1 Gough Hill Road in the prestigious Peak district was sold for HK$1.09 billion ($140 million). The residence has an area of more than 1,063 sq. m, five bedrooms, and a private elevator.

The sale surpassed the previous record: a villa in the Kowloon Tong area was sold earlier this year for slightly over HK$1 billion. Meanwhile, last week another property on the same street, 15 Gough Hill Road, was sold for HK$790 million. This turned out to be more than 60% below the purchase price paid by Chinese businessman Chen Hongtian in 2016.

According to Midland Realty, activity in the luxury housing market has risen significantly in recent months. This is driven by expectations of U.S. Fed rate cuts, the recovery of Hong Kong’s financial sector, and a revival of IPOs. Analysts note an increase in both prices and transaction numbers in the premium segment.

Experts at Knight Frank confirm these trends. In Q4 2024, 72 transactions were concluded compared to 15 a year earlier, which is 380% higher than in 2023. The average deal size was $22.9 million, higher than in London ($20.4 million). For the whole of 2024, 223 transactions were recorded in the $10+ million segment (166 in 2023), and the total volume grew from $2.9 billion to $4.8 billion. In the first quarter there were 36 deals, in the second – 61, in the third – 54, and in the last – 72.



The rental sector is also exerting pressure on the real estate market. According to Savills, in Q1 2025 rents in the premium segment on the Kowloon Peninsula increased by 3.9% compared to the previous three months. Meanwhile, in Hong Kong Island – the traditional financial hub and home to the most prestigious districts – a 0.2% decline was recorded. Kowloon is traditionally considered more affordable, but tenants here are increasingly finding spacious apartments with a better price-to-quality ratio than in the crowded and expensive center.

JLL experts noted that overall in January–March, luxury rents rose by 0.8% quarter-on-quarter, despite falling prices and rents in the mid- and mass-market segments. The premium sector is mainly supported by international tenants and expats concentrated in the Mid-Levels and The Peak areas. The limited supply of large apartments and houses here sustains demand even amid a general market correction. While the mid-range segment suffers from local buyers’ caution, luxury real estate remains relatively stable thanks to global demand.

In Q2 2025, luxury rents in Hong Kong increased by 8.6% year-on-year, surpassing Tokyo (+8.3%) and New York (+6.6%). Half-year figures rose by 4.6%, while quarterly growth was 1.4%. However, experts note that long-term dynamics are weak: over the past five years, cumulative growth reached 6.3% – the lowest among the 16 cities in Knight Frank’s sample.



The foundation for the market revival was laid last year. Reuters reminds that in February 2024 the authorities abolished additional duties on home purchases, which for more than a decade had restricted foreign buyers and second-home purchasers. The rate for non-residents previously reached 30%, then 15%, and was finally reduced to 4.25%, effectively equalizing it with the conditions for locals.

The authorities abandoned the policy introduced in the 2010s after prices fell by more than 20% compared to the 2021 peak. Experts explained that the decline was not caused by the restrictions; the project was deemed unsuccessful. Real pressure factors were higher mortgage rates, an outflow of professionals, and weak market prospects.

The reform immediately spurred demand from mainland Chinese buyers: by spring their share of primary deals reached 20–30%, with agencies reporting bulk purchases of five to eight apartments at a time. Developers noted mass buyouts of lots at project launches, while Centaline Property received over 1,500 inquiries from neighboring Shenzhen in just two weeks.

Hong Kong remains one of the most expensive real estate markets in the world. However, the city-state’s rental yields are low – 3.90%, report experts at Global Property Guide. The same figure is on Hong Kong Island, though more can be earned from a studio costing $522,495 and renting for $1,892 per month – 4.35%. The weakest result, 3.61%, is seen in three-bedroom apartments priced at $1.4 million with rents of $4,332.

In the New Territories, yields are estimated at 3.72%. The maximum, up to 4.56% annually, is possible with a two-bedroom apartment in Tuen Mun purchased for $458,776 and rented for $1,745. A yield of 4.42% is expected from the same type of housing in Tai Wai, priced at $623,000 with a rent of $2,293. Buying a $1.92 million 4+ unit in Tseung Kwan O and renting it out for $4,301 brings much less – only 2.69%.

The average rental yield in Kowloon is 4.13%. The leaders are studios in Hung Hom: with an average price of about $403,000 they can bring 4.89% at a monthly rent of $1,643. A similar figure, 4.85%, is shown by two-bedroom apartments costing $662,000 in the same location, rented at $2,676. Closing the top three are two-bedroom flats in Sham Shui Po, priced at $609,000 and rented for $2,408 – 4.74%. At the opposite end are apartments in the prestigious Kowloon Station complex: three-bedroom units average $3.31 million, rented at $6,881 per month, yielding only 2.49%.

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