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"Hot Money" At Boiling Point: Hong Kong Apartment Sells For Record $8773 Per Square Foot, New Asian Record

Tyler Durden's picture





 

Over the past year, one of the more confounding developments has been the relentless surge higher in the Chinese currency, whose unpegged version has soared to multi-decade highs against the USD, even as the economy has been mired in a downward secular shift with various indicators showing an ongoing decline. The reason for this "hot money" phenomenon is the easy money policy adopted by all the world's central banks (except for the PBOC of course, which is forced to stick with reverse repo-based ultra short-term money injections), coupled with the anti-foreign capital stance adopted by Switzerland, making China, Hong Kong and Singapore as the go to targets for "excess global cash." And as long as the hot money continues to flow and keep the inflation threat "on the sidelines", all attempts to cool its notwithstanding, the PBOC will be unable to ease, and allow US tech companies' stock prices to finally rise, as their profitability is and has always been a reflection of Chinese end-market demand. By the looks of things, the PBOC will be stuck in a holding pattern for a long time, as just confirmed by the sale of a luxury Hong-Kong 6,683 sq. foot apartment in the Gehry-designed Opus Hong Kong in Mid-Levels East, at a price of HK$455 million, which translates to HK$68,000 per square foot, or just under $8,800: a new all time record for Asia. So much for cooling the hot money.

From South China Morning Post:

A buyer has paid HK$68,083 per square foot for a luxury flat at Opus Hong Kong, the new Frank Gehry-designed residential building in Mid-Levels East, a record for an apartment in Hong Kong and Asia in terms of price per square foot.

 

Data from the Lands Registry show the flat, on the 9th floor of the building at 53 Stubbs Road, was sold for HK$455 million on October 17, nine days before the government announced measures to curb property speculation. There is no information on the buyer.

 

The 6,683 sq ft flat offers a view of the city and Victoria Harbour.

 

The price beat the previous record, set by a duplex flat at 39 Conduit Road in Mid-Levels West, which sold for HK$360.7 million, or HK$63,999 per sq ft in April last year.

 

Ricky Poon, executive director of Colliers International's residential sales department, believes the buyer was willing to pay a record-breaking price because there is a lack of flats bigger than 6,000 sq ft and it is the latest luxury development in the city.

 

The price is almost 6 per cent higher than that paid for a flat on the 8th floor at Opus Hong Kong, which sold for HK$430 million or HK$63,657 per sq ft in August.

 

The 12-storey Opus Hong Kong, developed by Swire Properties, provides 10 flats and two double-level garden apartments with private swimming pools. The flats are 6,000 to 6,900 sq ft. Gehry's previous designs include the Guggenheim Museum in Spain and the Walt Disney Concert Hall in Los Angeles.

 

Despite the luxury residential market taking a hit from the government's new measures since the record-breaking deal was signed, Poon said he did not expect the buyer to cancel. "I don't think Swire would cut their asking prices for the remaining flats. They would rather keep the flats for leasing. And luxury residential prices have dropped a few per cent only and the buyer did not need to pay the new buyer's stamp duty and new rate of special stamp duty," he said.

This is what an insane amount of money buys any self-respecting Russian oligarch. From the Opus website:

SHOW APARTMENT

 


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Tue, 11/13/2012 - 09:31 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Can't give that crap away in the ghost cities of China.

 

Location, location, location......learn it, love it, live it.

Tue, 11/13/2012 - 09:34 | Link to Comment Gully Foyle
Gully Foyle's picture

Biden 2016, like white on rice

Tue, 11/13/2012 - 09:43 | Link to Comment francis_sawyer
francis_sawyer's picture

Jump you fuckers...

Tue, 11/13/2012 - 09:44 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Lead the way amigo.

Tue, 11/13/2012 - 09:52 | Link to Comment Dalago
Dalago's picture

Market top, bitchez!

Tue, 11/13/2012 - 09:47 | Link to Comment Gully Foyle
Gully Foyle's picture

francis_sawyer

You know that is how most Asians commit suicide, by jumping off buildings.

Western bankers may not have the motivation to take the big plunge, but Asians have no problem.

(Biden 2016,Feel the wrath)

Tue, 11/13/2012 - 09:55 | Link to Comment Soul Train
Soul Train's picture

https://petitions.whitehouse.gov/petition/peacefully-grant-state-texas-w...

 

Texas is booming with over 60,000 votes to succeed today, yesterday they hit the 25k threshold.

 

Dig it. So Hong Kong is not the only one booming - Texas has proven they've blown a valve and the Obamaites better watch out.

Tue, 11/13/2012 - 09:58 | Link to Comment Gully Foyle
Gully Foyle's picture

Soul Train

Texas voted to become a success story, god on them.

(Biden 2016, who would of thunk this)


Tue, 11/13/2012 - 10:08 | Link to Comment francis_sawyer
francis_sawyer's picture

All my "ex's" live in Texas could be the new national anthem... Sweet!

Tue, 11/13/2012 - 09:59 | Link to Comment Gully Foyle
Gully Foyle's picture

https://sec-i0.mail.com/764/1694764,h=425,pd=2,w=620/elmo-kevin-clash.jpg

The puppeteer who performs as Elmo on "Sesame Street" is taking a leave of absence from the iconic kids' show in the wake of allegations that he had a relationship with a 16-year-old boy.

( Biden 2016, like leftovers?)

Tue, 11/13/2012 - 09:31 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Hong Kong is not China, it is Hong Kong.  Let's hope it stays that way.

Tue, 11/13/2012 - 09:35 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Hong Kong is not China

 

Actually.....it is now. Let's see how long they can keep from screwing it up.

Tue, 11/13/2012 - 09:37 | Link to Comment Thomas
Thomas's picture

Hot money produces bubbles. How many times does this need to be learned?

Tue, 11/13/2012 - 09:48 | Link to Comment Dr. Engali
Dr. Engali's picture

How much time do you have, and which bubble would you like to start with? Should we start with the South Sea bubble or Tulip mania?

Tue, 11/13/2012 - 10:53 | Link to Comment john39
john39's picture

why would they stop? its working splendidly for them.

Tue, 11/13/2012 - 10:00 | Link to Comment GlobalCtzn
GlobalCtzn's picture

At least one more time...................

Tue, 11/13/2012 - 09:35 | Link to Comment JPM Hater001
JPM Hater001's picture

Right...this time is different cause the city is different.

Tue, 11/13/2012 - 09:38 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Tommorrow is another day and on a long enough timeline...

Tue, 11/13/2012 - 09:43 | Link to Comment Gully Foyle
Gully Foyle's picture

LawsofPhysics

What the fuck does happen on a long enough timeline?

We have no idea because our science is about half a century old and our species is only around 5ok years.

Get back to me when we encounter aliens with a few million, or billion, years under their belts.

Something that can actually factually discuss long enough timelines.

(Biden 2016, Going commando since 1985)

Tue, 11/13/2012 - 09:49 | Link to Comment LawsofPhysics
LawsofPhysics's picture

What happens?  You fucking die moron.  What you do with the time your are given is what matters.  Now go try and be productive Gully and try not to look like such an idiot when posting.

Tue, 11/13/2012 - 09:57 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Warning......spoiler alert.

Tue, 11/13/2012 - 10:04 | Link to Comment Gully Foyle
Gully Foyle's picture

LawsofPhysics

You can not prove that you die.

You have zero evidence that includes every single person born in the last 50k years.

You can not prove anyone living today will not have acheived immortality via technology.

The reality is we have suggestions regarding the mechanics of the universe that surrounds us.

Those suggestions are frequently modified and outdated ideas replaced with new.


Tue, 11/13/2012 - 10:10 | Link to Comment francis_sawyer
francis_sawyer's picture

There is no spoon...

Tue, 11/13/2012 - 10:13 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

You can not prove that you die.

 

Here's Johnny! He's sorta like a prophet.

http://www.youtube.com/watch?v=ht7mxF9XZiA

Tue, 11/13/2012 - 14:55 | Link to Comment mrgneiss
mrgneiss's picture

Guess you guys missed this one, the afterlife has recently been proven:

http://thewatchers.adorraeli.com/2012/11/12/proof-of-heaven-documents-existence-of-afterlife-multiverse-intelligent-life-beyond-earth-multidimensional-realities/

Work on your merkaba, there isn't much time left.

Peace.

Tue, 11/13/2012 - 10:20 | Link to Comment Dr. No
Dr. No's picture

Just because it does not happen readily, does not prove a false.  Try an experiment:  Step ini front of a bus.  My bet is you die.

 

The sun has never exploded.  Does that mean it never will?

Tue, 11/13/2012 - 11:21 | Link to Comment JPM Hater001
JPM Hater001's picture

Bra-vo

Tue, 11/13/2012 - 13:03 | Link to Comment slackrabbit
slackrabbit's picture

go drink petrol  and prove me wrong.

(anyone got a lighter?)

 

Tue, 11/13/2012 - 09:50 | Link to Comment adr
adr's picture

Don't you know, there are no ancient civilizations left.

Once a society believes they can unlock the secrets of the universe and search for the Higgs Boson, they destroy themselves soon after.

Or maybe you never watched Lexx.

Tue, 11/13/2012 - 10:07 | Link to Comment Gully Foyle
Gully Foyle's picture

adr

I don't recall Higgs Boson from LEXX.

Kai: I am Kai, last of the Brunnen-G. Millennia ago, the Brunnen-G led humanity to victory in the war against the Insect civilization. The Time Prophet predicted that I would be the one to destroy the Divine Order and the League of 20,000 Planets. Some day, that will happen… but not today, as today is my day of death. The day our story begins.

( Biden 2016, got Meth?)

Tue, 11/13/2012 - 12:59 | Link to Comment slackrabbit
slackrabbit's picture

um dude it was handed back in 1997

Tue, 11/13/2012 - 09:32 | Link to Comment falak pema
falak pema's picture

petraeus's pad after he agrees not to testify.

Tue, 11/13/2012 - 09:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Heard the cat cut a pretty sweet deal......good for him.

Tue, 11/13/2012 - 09:37 | Link to Comment Gully Foyle
Gully Foyle's picture

falak pema

Dude where you been? It is far more interesting

(Biden 2016, I'm not Gore)

http://hotair.com/archives/2012/11/13/af-pak-theater-commander-caught-in...

 

The FBI probe into the sex scandal that prompted CIA Director David Petraeus to resign has expanded to ensnare Gen. John R. Allen, the commander of U.S. and NATO troops in Afghanistan, the Pentagon announced early Tuesday.

According to a senior U.S. defense official, the FBI has uncovered between 20,000 and 30,000 documents — most of them e-mails — of “potentially inappropriate” communications between Allen and Jill Kelley, a 37-year-old Tampa woman whose close relationship with Petraeus ultimately led to his downfall.

Allen, a Marine, succeeded Petraeus as the top allied commander in Afghanistan in July 2011. He also served as Petraeus’s deputy when both generals led the military’s Tampa-based Central Command from 2008 until 2010.

The FBI first notified the Pentagon of its investigation into Allen’s communications with Kelley on Sunday evening, according to the senior defense official, who spoke on condition of anonymity to discuss details of the pending case.

http://ace.mu.nu/

Jill Kelley, the woman who was (allegedly) threatened by Gen. Petraeus's squeeze Paula Broadwell and who (apparently) started the FBI investigation that led to Petraeus' ouster, who went to the FBI for help after the threats and then (allegedly) had a relationship with the FBI agent in charge of her own case, who (allegedly) sent her shirtless pics of himself, also (apparently, allegedly) had "compromising" communications with Gen. John Allen, the Big Damn Commander of our war effort in Afghanistan.

You can't even make this shit up. It's not a love triangle. It's a love Pentagon.

...

Twenty to thirty THOUSAND pages? I write for a living and I can tell you that I haven't written twenty to thirty thousand pages in my working career. Cheese-and-crackers, that's a damn lot of love letters. I've never liked anyone enough EVER to spend that much time talking to them. Eesh.

Tue, 11/13/2012 - 09:47 | Link to Comment Quinvarius
Quinvarius's picture

I am going to send junk shots to everyone involved and add another layer to this tangled web.

Tue, 11/13/2012 - 10:07 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Just as long as we don't leave another 4 people to die on video.....I'm good with it.

Tue, 11/13/2012 - 09:59 | Link to Comment spanish inquisition
spanish inquisition's picture

With all this love letter writing to side action, who's got time for intelligence or warmongering? Makes you wonder who is actually running these wars.........

"Ooh baby, get me some tanzanite. Not the regular stuff. The fancy Iranian tanzinite! And if you really loved me, you would go get it yourself.... Thats what would make it special!"

Tue, 11/13/2012 - 10:10 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Love letter tsunami alert!

 

Can you feel all the love going around?

Tue, 11/13/2012 - 10:16 | Link to Comment falak pema
falak pema's picture

you're obviously not a 4 star general who is tired of staring as stray afghan goats and walking women's tents and having an intense desire to enter into a woman's wigwam. 

Just imagine all those lonely nights spent in Poppy flower smoke without a poke.

Even soldier monks gets the urge to splurge. 

So maybe those 20000 pages are his way of saying "I have an irrepressible urge to climb Empire State with you my Kelly of such gracious face."

Who can blame him for trying to play King Kong. He knew like we know how a film like that ends; its called Karma. 

Maybe this is the KAiros moment of Pentagon when our ADOLESCENT dreams will come true and we'll hear the brass hats singing all naked on the Pentagon lawn : GIVE PEACE A CHANCE!...

Tue, 11/13/2012 - 14:05 | Link to Comment Fuh Querada
Fuh Querada's picture

"Fuck for peace" was the slogan of SF flower power in the 60s.

Tue, 11/13/2012 - 10:05 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

pretty funny .....

... and get 'compensated' for the book he could write but will never get published now

 

Tue, 11/13/2012 - 09:32 | Link to Comment JPM Hater001
JPM Hater001's picture

And we have peak housing bubble confirmed in China.

Please strap yourself in as we head for the bottom.  It's 8733 feet below.

Tue, 11/13/2012 - 09:39 | Link to Comment Gully Foyle
Gully Foyle's picture

JPM Hater001

Funny how I read peak this and peak that damn near every day, but nothing ever really drops these days.

Sure it is a good throw away line, but when nothing happens it becomes "Where's the Beef".

Tue, 11/13/2012 - 11:23 | Link to Comment JPM Hater001
JPM Hater001's picture

Let me see where did I put your ticket for the clue bus...

Tue, 11/13/2012 - 12:06 | Link to Comment Blankenstein
Blankenstein's picture

No doubt the same thing was said by deniers prior to October 1929. 

Tue, 11/13/2012 - 09:53 | Link to Comment drivenZ
drivenZ's picture

no different in the US...

http://www.businessweek.com/articles/2012-05-18/the-developer-behind-a-9...

 

There is no bottom in China. Atleast not one that will have a major global impact. The communist put is at work. The government has the means to support the economy and they will keep doing it.   

 

I might add that as long as the divide between the uber-wealthy and the poor continues to grow, there will still be a healthy market for properties like this. Even with the financial crisis the Manhattan real estate market had a much quicker turnaround than most areas of the country. 

Tue, 11/13/2012 - 09:33 | Link to Comment krispkritter
krispkritter's picture

Is it just me or does it already look like it's about to fall over? It's like the Leaning Tower of Pisa(Shit)....

Tue, 11/13/2012 - 09:50 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

I believe that's the view from Apple maps...

Tue, 11/13/2012 - 09:39 | Link to Comment slackrabbit
slackrabbit's picture

damn that building is ugly...

Tue, 11/13/2012 - 09:45 | Link to Comment Gully Foyle
Gully Foyle's picture

slackrabbit

It has a kind of modernist appeal.

Would be cool if they did HK version of Towering Inferno in this building.

(Biden 2016, Not a Muslim)

Tue, 11/13/2012 - 15:50 | Link to Comment e-recep
e-recep's picture

i wonder what kind of retard designs such a butt-ugly building?

Tue, 11/13/2012 - 09:44 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Much of this stuff is a result of european capital export post 1980 /  1986...............as they changed from Nation to extreme market states

 

Now theres not much european capital remaining - however a break up of the Euro would still sink the BRics in my opinion and Hong Kong as a trading / old opium dealing island.

Tue, 11/13/2012 - 09:44 | Link to Comment justanothersucker
justanothersucker's picture

It's only worth....well....whatever, until someone builds another taller building farther up the hill.  It's all about the high ground.

Tue, 11/13/2012 - 10:15 | Link to Comment Dr. No
Dr. No's picture

Or when someone builds between them and the view.

Tue, 11/13/2012 - 09:45 | Link to Comment adr
adr's picture

That is one ugly building with an interior only a Jew could love.

6000sq ft? God, one flat could house what? 600 Chinese?

Let the 100sq ft slum dwellers in Hong Kong know that some fools have 6000sq ft pads in the hills.

Tue, 11/13/2012 - 10:14 | Link to Comment francis_sawyer
francis_sawyer's picture

That's why the Brazilians are clever... All the favelas are up in the hillsides on prime real estate...

~~~

http://www.passport2freedom.org/favela/

Tue, 11/13/2012 - 09:59 | Link to Comment swissaustrian
swissaustrian's picture

I've researched this a year ago, too. Returns on these stocks have been mixed at best:

http://www.ronpaulforums.com/showthread.php?304791-CANNABIS-COMPANIES-in...

Tue, 11/13/2012 - 09:47 | Link to Comment frenchie
frenchie's picture

hm

i thought that 8000 euros / m² in Paris was insane ?

Tue, 11/13/2012 - 09:53 | Link to Comment adr
adr's picture

And to think my property is only worth $92 a square foot.

WE'VE GOT SOME CATCHING UP TO DO!!!!

Print Bernanke print!!!

Tue, 11/13/2012 - 09:56 | Link to Comment Sudden Debt
Sudden Debt's picture

Nice :)

And just thinking that the guy who bought it pays his workers 5 cents a hour working 14 hours a day 7/7....

Gotta love the trickle down system.

When he spits from his balcony, he's pretty sure it will hit some poor "employEEeeee's" head...

Tue, 11/13/2012 - 09:56 | Link to Comment adr
adr's picture

I think Bang Bros found a new set location.

All that marble and the giant couch are only good for one thing.

Tue, 11/13/2012 - 10:04 | Link to Comment Sudden Debt
Sudden Debt's picture

actually...

that balconny looks scary dangerous when it rains...

that living rooms makes me seasick watching it...

that bathroom is a killer when you get out of bath and where are the showers?

and when you open the window, you're at smog height....

It actually looks like a 4 star hotel room. Not 5.

nice buy... :)

Tue, 11/13/2012 - 10:17 | Link to Comment Dr. No
Dr. No's picture

More inflation data:

 

I was in brazil recently and foudn the following:

1) Big mac meal: $10 US

2) Reward for lost dog (glued to light pole): $1000 US

3) Glass of orange juice: $2.50 US

Tue, 11/13/2012 - 10:33 | Link to Comment BlueCollaredOne
BlueCollaredOne's picture

I would run a dog finding service during the day, and steal dogs at night.  

 

Tue, 11/13/2012 - 10:36 | Link to Comment slackrabbit
slackrabbit's picture

sorry MF Global already has that sector covered

Tue, 11/13/2012 - 14:04 | Link to Comment Volaille de Bresse
Volaille de Bresse's picture

This shit is obscenely expensive ugly and it seems to be about to crumble = it's a perfect metaphor for 21st century capitalism!

 

Go Geary go! You've made it (unvolunteerly of course as Geary is a terminal dickhead full of himself).

Tue, 11/13/2012 - 10:47 | Link to Comment juliawong
juliawong's picture

You don't understand ;)

Regarding to the insane price tag: People who lives in the Hong Kong Island mountain all think that they are "lording" over the peasants at sea level.

Traditionally (as in since the colonial times), most of them used to be british or at least caucasians expats who thought that living higher up in the mountains is more preferably because the air is fresher and freer from the pollution/exhausts from the traffic down hill.

Recent studies, shows that the mid levels facing North is one of the worst in terms of air pollution because China's factories release the pollutants particles and it's trapped by the mountain facing "up" north and it's no longer the car exhaust that is the major souce of pollution, physically, in HK.

And there is also the probability of "price propping" for free PR stunts purposes, where it is just a "show" and underthetable, the actual price paid is much less. It has happened before in Hong Kong more than a few times. However, personally, I think this is not very likely here, in the case here, because they only have 12 units, unlike the previous highly suspicious cases where the "rest" of the units are at least in the dozens.

 

 

Tue, 11/13/2012 - 11:30 | Link to Comment combatsnoopy
combatsnoopy's picture

After watching a school building crumble in China during a 5.0 earthquake, I refuse to step foot into any Chinese made building past the first floor.  I feel a lot better about the buildngs in Japan. 
Asia is merely nothing more than a cute backdrop for "imperialists".  Asia is way too crowded for me. 

To the person who buys this thing, I've got a bridge in Arizona to sell you.  

Tue, 11/13/2012 - 12:16 | Link to Comment WilliamShatner
WilliamShatner's picture

Infration, britchez!

Tue, 11/13/2012 - 12:54 | Link to Comment Totin
Totin's picture

Hopefully it comes with some nice, 24 hour, female staff.

Tue, 11/13/2012 - 13:15 | Link to Comment Diogenes
Diogenes's picture

Now you know why they think Vancouver real estate is cheap.

Tue, 11/13/2012 - 14:38 | Link to Comment orangegeek
orangegeek's picture

And after the markets tank, you can pack lots of suicidal financiers into this flat  - and it's high up enough that jumping shouldn't be a problem.

 

Someone should open a bucket, sponge and squeegee store at street level.  There's going to be a helluva mess to clean up.

 

 

Wed, 11/14/2012 - 15:29 | Link to Comment Belteshazzar
Belteshazzar's picture

It's a plot to save money on replacement flags when Puerto Rico joins the union!

Do NOT follow this link or you will be banned from the site!