Name: SCMP
Telephone: +852-2680-8888

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Salina Li

Hong Kong’s luxury property segment is showing signs of a revival, with mainland Chinese buyers returning to the market after an absence of a few years because of the pandemic.
Market observers expect developers to ramp up the supply of luxury property amid increasing demand and likelihood of a potential decline in interest rates later this year.
Two brand new properties totalling HK$1.2 billion (US$153.5 million) were bought by different mainland Chinese buyers last week, according to Eddie Kwok, senior director of valuation and advisory services at CBRE Hong Kong.
A 8,583 sq ft duplex penthouse at Kerry Properties’ Mont Verra, in Beacon Hill, Kowloon Tong, was sold by tender for HK$619 million, or HK$72,119 per square foot.

Another luxury villa developed by Wharf Holdings and Nan Fung Group, a 4,579 sq ft unit at 8 Mount Nicholson Road, The Peak, was also sold by tender for HK$600 million, or HK$131,033 per square foot. An identical property in the development fetched the same price in 2017, making it Asia’s most expensive residence.
“Mainland Chinese purchasers intend to buy [new] luxury homes as developers have provided a lot of discounts and rebates,” Kwok said.
Who are the buyers of 11,000 sq ft Hong Kong mansions with safe rooms?
Hong Kong’s luxury property prices fell by around 8 per cent in 2023, and 15 per cent from the peak in July 2018, according to CBRE. A total of 173 deals involving units priced at US$10 million or more were recorded last year, a 31 per cent year-on-year increase, according to Knight Frank. Volumes rose 13 per cent year on year to HK$25.5 billion.
Kwok said that since the government relaxed the stamp duty last October, there has been a marked increase in the proportion of buyers from the mainland, adding that the trend will gather pace this year.
Transactions rose 39 per cent month on month in December to 311, according to the latest data from the Inland Revenue Department.
Kwok said these transactions are likely to have mainly involved mainland Chinese buyers and some of the deals were for luxury homes.
In his policy address last October, Chief Executive John Lee Ka-chiu announced several measures to relax the decade-old property curbs to revive the city’s sluggish market. These included halving the buyers’ stamp duty to 7.5 per cent for non-permanent residents and residents buying a second or additional home.


Eligible overseas talent are also not required to pay stamp duty on property purchases unless they fail to become permanent residents.
The rising transaction volumes could provide the tonic the market needs, according to Kwok, noting that developers were still able to offload their assets at relatively good prices. He added luxury property prices will remain stable this year.
In view of the renewed buying interest, developers are likely to resume the sales of luxury homes in a bid to seize the pent-up demand.
Lower interest rates expected in the second half of the year will act as another catalyst. Analysts expect a cut of 75 basis points by the end of the year.
A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to CBRE.
Investment in Hong Kong property set for turnaround in 2024, Colliers says
These include one project on The Peak, the city’s most prestigious address. Wheelock Properties may offer five houses in phase 1 of No 1 Plantation Road.
In Island South, there are three projects: One Stanley with 11 blocks of 50 flats and 32 houses, 108 Repulse Bay Road with eight houses and 11A Shouson Hill Road West with three houses.
In Pok Fu Lam, there is one project comprising seven houses.
In Jardine’s Lookout, there is a project with a total of 114 units.
In Kowloon, Wharf Holdings is expected to launch phase 1 of 188 Lung Cheung Road, which will provide 28 luxury flats.
However, the actual supply may be lower as developers may suspend or postpone the launch of the project depending on the market conditions, CBRE said.
Meanwhile, Joseph Tsang, chairman of JLL Hong Kong, said there will be more distressed sales of luxury property this year.
Luxury Hong Kong flat seized from Macau ‘junket king’s’ ex-lover goes on sale
In December, a luxury flat in Mid-Levels, seized from the former lover of incarcerated Macau “junket king” Alvin Chau Cheok-wa, was put up for sale. The listed price is significantly lower than the asset’s peak valuation as creditors seek to extract their dues.
In September, receivers for a HK$680 million Mid-Levels flat, seized from Chinese tycoon Chen Hongtian for unpaid loans, sold the property at a discount of 39 per cent to the prevailing market price.
Two Hong Kong luxury properties valued at more than HK$1.5 billion owned by a company linked to distressed mainland developer China Evergrande’s founder Hui Ka-yan were also seized by a creditor in September.


Hong Kong has what it takes to bounce back. We just need to pull together

Hong Kong property: education needed to keep mainland Chinese buyers coming

Hong Kong renters look to cuts in interest rates for relief

Hong Kong developers act to cut supply chain emissions in construction, building materials

Hong Kong property

Mainland Chinese buyers return to Hong Kong’s luxury property market amid signs of a pickup in activity

An aerial view of Kerry Properties’ Mont Verra luxury residential project in Beacon Hill. Photo: Handout

General view of Mount Nicholson at 8 Mount Nicholson on The Peak. Photo: Martin Chan

Hong Kong luxury flat seized from jailed Macau ‘junket king’s’ former lover on sale at discount

A luxurious apartment in Mid-levels, once owned by the former lover of Macau ‘junket king’ Alvin Chau, has been put up for sale. Photo: Handout 

Agents said the asking price of HK$90 million for the Mid-Levels property is a third lower than what it could fetch in a bull market. Photo: Handout

Hong Kong mansions, worth US$192 million, linked to China Evergrande founder Hui Ka-yan, seized by creditor

A creditor of China Evergrande has seized two luxury houses on The Peak in Hong Kong linked to the developer’s founder Hui Ka-yan. Photo: Handout

China Evergrande’s founder Hui Ka-yan pictured in March 2017. Photo: Reuters

Chinese tycoon Chen Hongtian’s seized luxury Hong Kong flat sells for US$53 million, 39% below market price

Opus Hong Kong is the first residential project in Asia designed by architect Frank Gehry. Photo: Handout

Chen Hongtian, pictured in 2016. Photo: Xiaomei Chen

Business

Property

LUXE Homes

A penthouse at Mont Verra in Kowloon Tong sold for HK$619 million (US$79.2 million), while a home at 8 Mount Nicholson Road on The Peak fetched HK$600 million
A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to CBRE


Hong Kong’s luxury property segment is showing signs of a revival, with mainland buyers returning to the market. Analysts expect developers to ramp up supply amid increasing demand and lower rates ahead.


Mainland Chinese buyers return to Hong Kong’s luxury property market amid signs of a pickup in activity

A penthouse at Mont Verra in Kowloon Tong sold for HK$619 million (US$79.2 million), while a home at 8 Mount Nicholson Road on The Peak fetched HK$600 million A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to CBRE

A penthouse at Mont Verra in Kowloon Tong sold for HK$619 million (US$79.2 million), while a home at 8 Mount Nicholson Road on The Peak fetched HK$600 million

A total of 247 luxury units, comprising 55 houses and 192 flats, are likely to hit the market this year, according to CBRE