Hong Kong property: cash-rich buyers make most of Peak distress amid 50% price slump
Distressed sales in Hong Kong’s luxury property market have driven prices down by as much as 50 per cent, with opportunistic buyers snapping up bargains, Savills says
Transactions in Hong Kong’s super luxury property sector have been supported by opportunistic, cash-rich buyers pouncing on distressed sales amid a downtrend in sentiment, according to a Savills report on Friday.
Most of these distressed sales have been witnessed in the prestigious area of The Peak at prices averaging 50 per cent below their Covid-era valuations, the property consultancy said
“This sharp decline in prices has been largely attributed to several instances of distressed sales, where property owners were compelled to sell to settle outstanding debts,” the report said.
In July, Savills brokered the sale of four mansions at 46 Plantation Road, which were sold for HK$1.1 billion (US$141 million). The houses were among several assets the family of Ho Shung-pun, a low-key clan of real estate developers in Hong Kong, had pledged as collateral for HK$1.6 billion of private credit loans.
Savills also brokered the sale of a house that once belonged to China Evergrande Group chairman Hui Ka-yan. The ultra-luxury property on The Peak sold for HK$838 million.
“As veteran investors and property owners began to face financial difficulties, these resulted in sharp price cuts for the emergency sale of such properties,” said Raymond Lee, CEO for Hong Kong, Macau and Greater China at Savills.
