999. No, we are not talking about the emergency hotline in this scenario. In Hong Kong, land ownership is not freehold, but rather granted as a right of use for a term most likely ranging from 50 years to 999 years. Land with 999-year lease terms are treated as “virtual freehold”, which can be very desirable for the leaseholder.

In comparison to the 99, 75+75 and 50 year leases, the 999-year lease term is rather uncommon. To put things into perspective, certain Asian investors are enticed by the acquirability of freehold properties in cities like London. Thus, one can also argue that Hong Kong’s 999-year leases are effectively the closest comparison to London’s freehold properties due to the fact that there are virtually no freehold properties in existence (with the exception of St. John’s Cathedral in Central which was granted freehold in 1847 with perpetual ownership under the condition that the land was used as a church). Furthermore, the rarity and high demand for such leases are the reasons why investors are willing to go as far as to pay additional premium to obtain leaseholder status for these specific leases.

999 year leases in Hong Kong are becoming increasingly attractive to most investors, especially for foreign investors, and private real estate funds alike. Back in 2012, Knight Frank successfully closed a transaction with a group of South Asian investors who purchased a building in Causeway Bay because of its 999-year lease term. Other notable examples include the Mandarin Oriental Hotel in Central, Exchange Square, Hong Kong Club Building, Taikoo Shing, AIA Central, and Star House in Tsim Sha Tsui are all highly sought after. Hence, 999-year lease terms are in high demand and are extremely desirable.