Business
Cash-Rich Buyers Capitalize on Distressed Sales Amid 50% Price Slump in Hong Kong’s Luxury Property Market
Hong Kong real estate: affluent purchasers capitalize on Peak distress following a 50% price drop
The luxury property market in Hong Kong has seen a dip in prices by up to 50% due to distressed sales, leading to bargain hunters taking advantage of the situation, according to Savills.
The super luxury real estate market in Hong Kong has seen continued activity thanks to wealthy buyers taking advantage of sales from distressed sellers during a period of declining morale, as per a report from Savills released on Friday.
The majority of these urgent property sales have been observed in the high-end region of The Peak, with prices typically half of their valuations during the Covid period, according to the real estate advisory firm.
The report indicated that the significant drop in costs has been primarily linked to numerous cases of forced sales, where homeowners had to sell their properties to pay off their existing debts.
In July, the real estate company Savills facilitated the transaction of four mansions located at 46 Plantation Road, which were purchased for HK$1.1 billion (US$141 million). These properties were part of a number of assets pledged by the family of Ho Shung-pun, a discreet group of property developers in Hong Kong, as security for private credit loans amounting to HK$1.6 billion.
Savills was also involved in the transaction of a residence previously owned by Hui Ka-yan, the chairman of China Evergrande Group. The high-end real estate located at The Peak was sold for a sum of HK$838 million.
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