A MANSION in Hong Kong has been sold for HK$845 million (S$143 million), as the luxury property sector picks up on lower interest rates and government measures.
House 2 at 15 Shouson Hill was sold on Thursday (Oct 17), according to transaction records. Preliminary deposit equal to 10 per cent of the purchase price was paid upon signing the sale agreement, with the rest due by Nov 18. The project’s developers include Emperor International Holdings, CSI Properties, C C Land Holdings and Mingfa Group International.
The transaction comes after Hong Kong’s announcement on Wednesday that residential property transactions of no less than HK$50 million can be counted towards the New Capital Investment Entrant Scheme, where the wealthy can invest at least HK$30 million to gain residency. The amount of real estate investment that can be counted towards the total capital investment is capped at HK$10 million.
The announcement’s impact on luxury residential sales will be “immediately reflected,”said Hannah Jeong, head of valuation and advisory at CBRE Hong Kong. Sales has picked up since the Federal Reserve’s rate cut in September, and transactions this year have already surpassed that of the whole of last year, she said.
Hong Kong still faces headwinds from a recovery in real estate, hit by borrowing costs and poor economic sentiment. Residential transactions are at a multi-year low, while vacancies in office towers remain at a record.
Hong Kong Economic Times reported the transaction earlier. BLOOMBERG