Buildings are seen from Victoria Peak at dusk in Hong Kong on Aug 28, 2019.  (PAUL YEUNG/BLOOMBERG)

Hong Kong’s luxury property market has set another record, as its recovery from the pandemic gathers steam.

Wharf Holdings Ltd has rented out a luxury house in its 11 Plantation Road project on the Peak for HK$1.35 million (US$174,000) a month, it said in a statement late Tuesday. That translates into more than US$2 million a year for the unidentified tenant.

The 10,804 square-foot house overlooking Victoria Harbor boasts a private garage, a garden and an elevator within the property. Wharf plans to sell four of its seven houses at 11 Plantation Road, while leasing the rest for rental income

The rent is the highest for a home in Hong Kong, according to Louis Ho, principal sales director at Centaline Property Agency Ltd. “Some of these tycoons may not have found their dream house so they tend to rent for a while before an opportunity to buy arises,” said Ho.

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The 10,804 square-foot house overlooking Victoria Harbor boasts a private garage, a garden and an elevator within the property. Wharf plans to sell four of its seven houses at 11 Plantation Road, while leasing the rest for rental income.

A scarcity of home supply on the Peak and the time-consuming nature of luxury sales likely prompted the developer to consider renting out some of its stock, according to Thomas Lam, an executive director at Knight Frank LLP.

“It takes a long time to sell a home,” said Lam. “They would have stock waiting to be sold anyway. Leasing some of the houses with substantial rents can stimulate the market while offering rental income.”

The city’s high-end residential market has seen record-breaking apartment and land sales recently. Last month, CK Asset Holdings Ltd offloaded an upscale apartment for HK$459 million, the highest for such a property in Asia.

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In the same month, a Wharf-led consortium won a residential plot on the Peak for a record price by square feet in Hong Kong.