Hong Kong property: rich and famous lose billions as they succumb to slumping home values

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Tycoons like Chen Zhuolin, Hui Ka-yan and the Ho Shung-pun family sold homes and offices at significant losses, reflecting the broader market slump

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Houses on The Peak, Hong Kong’s most desired residential address. Photo: Roy Issa

Salina Li

Published: 9:37am, 1 Jan 2025

Hong Kong elites lost billions in property deals in 2024, as wealthy individuals facing liquidity challenges in a high-interest rate environment and soft economy offloaded their assets at fire-sale prices.

Notable sellers included Chen Zhuolin, the chairman of distressed mainland Chinese developer Agile Group, who lost US$16 million in November.

The 62-year-old tycoon sold nine flats in Hamburg Villa on Eastbourne Road in Kowloon Tong, which were valued at a combined HK$213 million (US$27.3 million). The units were sold at discounts of between 53 and 63 per cent, less than half the original investment six years ago.

“The prices of office and retail properties have fallen 50 to 70 per cent from the peak,” said Reeves Yan, head of capital markets at CBRE Hong Kong.

Agile Group chairman Chen Zhuolin lost millions on distressed property sales in Hong Kong. Photo: K. Y. Cheng

The distress sales are a direct consequence of the four-year slump in mainland China’s property market that has eroded the personal fortunes of local and mainland real estate tycoons, such as Hui Ka-yan, the founder of China Evergrande Group. Other high-profile casualties include the family of Ho Shung-pun, the family of late shop king Tang Shing-bor and Cheung Kei Group’s Chen Hongtian.