A Hong Kong home is being rented out at $2 million a year, setting a new city record

• A property in Hong Kong is being rented at approximately $174,000 USD a month, Inman reports.
• That comes out to $2 million a year, a new record for the city.
• The house is in Victoria Peak, a famously expensive neighborhood in Hong Kong.

In Hong Kong, there's a new rental record in town - a $2 million record, to be precise.

A rental property in the Victoria Peak neighborhood of Hong Kong is being leased out for roughly $174,000 a month, or $2 million a year, the South China Morning Post reported. It's the most expensive rental recorded in Hong Kong history.

"This should be the most expensive monthly rent for a house in Hong Kong in 2021," Thomas Lam, executive director at international property consultancy Knight Frank, told the SCMP's Sandy Li and Pearl Liu.

The 10,000-square-foot house is located at 11 Plantation Road and is one of seven homes that share the same address. Each house, per the SCMP, has a private elevator and a top floor that can be used as a banquet hall. The record-setting home stretches across four floors and has a 2,000-square-foot yard. Images of the address show leafy vegetation on one side of the street and views that open up to the Victoria Harbor.

The home is 20-25% more expensive than other listings on the same street.

The property is being leased out by Wharf Holdings Ltd, a 135-year-old company that mainly deals in property development. Hong Kong billionaire Peter Woo, whose net worth is estimated at $18.3 billion, served as chairman of the company until 2015. His son Douglas is now chairman.

Wharf Holdings did not immediately respond to Insider's request for comment for this story.

Victoria Peak, also known at the Peak, is known for its luxury homes and high prices. The secluded neighborhood is home to billionaires, bankers, and business magnates. A 2016 report from Mansion Global detailed that Jack Ma, founder of Alibaba Group, is rumored to be amongst the neighborhood's high-profile residents.

Like much of the world, Hong Kong's luxury real estate took a hit in 2020. Luxury volumes fell especially heavily in the last three months of the year, per a January report from global real estate company Savills. And Knight Frank's Prime Global Cities Index indicates that luxury home prices in Hong Kong fell 6.9% year over year in 2020.

The market is, however, showing signs of recovery. In February, a penthouse in the Peak sold for $59 million. At $17,542 per square foot, the sale set a new Asia-wide record. Also in February, Wharf Holdings was involved in buying a 1.25-acre plot of land for about $935 million, setting a record for the most ever paid for a government-owned piece of property in Hong Kong.

Then, there's the $541 million project underway in Hong Kong's New Territories, where China Evergrande Group is converting a farmland plot into a luxury development. Included in that development's plans is an enormous 240,000-square-foot villa.