Lofty ambitions: The stratospheric demand for penthouse homes in London, Hong Kong and New York

Ruth Bloomfield talks to property experts in three major cities about the demand for penthouse homes and why they hold their value.

They have sat at the very pinnacle of the world’s super-prime property market for the past century. And despite a year of global conflict and political upheaval, penthouse apartments continue to shatter price ceilings all over the globe. These top-floor, top-drawer homes attract huge premiums compared to regular luxury apartments. Experts agree that if you want a status symbol home with wow factor and investment potential, then the only way is up.

Members of London’s exclusive penthouse club include hedge-fund billionaire Ken Griffin, who recently spent a reported £100 million on the penthouse at The Peninsula London, a new building overlooking the grounds of Buckingham Palace. Not to be outdone, Russian tech mogul Andrey Andreev is thought to have spent £145 million on the penthouse (plus two adjacent properties) at Twenty Grosvenor Square in Mayfair.

For buying agent Camilla Dell, managing partner of Black Brick, this kind of high-rolling client wants more than simply a top floor flat. “It must have direct lift access – the lift opens straight into the apartment, not a lobby,” she explains. “It is about privacy, but also about being unique, one of one. It must have amazing landmark views and decent, usable outside space so you can enjoy being at the top of the building.

“The best penthouses now have phenomenal architecture,” Dell adds, “sweeping staircases, double-height atriums… a penthouse should have a real wow factor.”

According to recent research by Knight Frank, penthouses cost, on average, 43 per cent more than ordinary apartments. “I would say 30 to 50 per cent more, depending on the building,” says Dell. “And they should hold their value because they are so rare.”

The whole concept of penthouses began on the west side of the Atlantic, in 1920s New York, where developers first began creating premium penthouse apartments. Today, Raphael De Niro, real estate broker at Douglas Elliman, believes buyers pay big money for amazing views. Buildings also need to be highly serviced, with a doorman and concierge plus communal spaces like playrooms and lounges.

Penthouse prices vary depending on the location and quality of the building, but De Niro says buyers should budget between £33,000 and £99,000 per square metre. A regular apartment would cost £12,400 to £24,800 per square metre, representing a potential penthouse premium of up to 400 per cent.

Buyers are willing to pay more for a penthouse partly because of their privacy and views. “Wellness benefits like reduced noise, air and light pollution are becoming more important,” says De Niro. “It’s less about conspicuous consumption or having a public status symbol than 10 years ago.”

Hong Kong is one of the highest-density places on earth, which means that clear views and outside space are hugely sought after, says Thomas See, senior associate director, investment CEO Office, at Savills Hong Kong.

His buyers want an indoor/outdoor space to live in, plenty of square footage, high ceilings and breathtaking views, plus a well-run building with clubhouse amenities – and they’ll pay a premium of “at least 15 per cent” to secure one.

They also want to show the world how well they are doing, of course. “Acquiring a penthouse is viewed as a status symbol, signifying wealth and success,” says See. And in the long term he is confident these buyers will see a return on their investment, thanks to the scarcity of penthouses. 

“While each building may have around 50 to 100 standard units, there are typically only one or two penthouse units,” he says. “Penthouses tend to hold their value better than other apartment types due to their limited supply and higher demand. Most penthouses are owner-occupied, making it rare for them to be listed on the market.”

First published in the January 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.