Purchasers encompass residents of The Peak, the Southern District, and Kowloon, along with wealthy individuals from Mainland China and abroad.
A group of developers, headed by
New World Development
(NWD) earned HK$1.3 billion (US$166 million) from the sale of 24 premium properties in Hong Kong’s Southern District, as affluent purchasers capitalize on a market slump to purchase desirable holdings.
On Friday, a 1,706 square feet, four-bedroom apartment at Deep Water Pavilia—a 447-unit upscale residential development in Wong Chuk Hang—was sold for HK$85.3 million, equating to HK$50,000 per square foot. This transaction represents both the highest price in total and on a per-square-foot basis within the area recently, as stated by NWD on Friday. The company holds a 50% stake in this project.
The deal broke a record set just a few days earlier by a unit of the same size in the same development, which sold for HK$82 million.
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According to NWD on Monday, the purchasers of the 24 apartments comprised residents from The Peak, the Southern District, Kowloon, along with wealthy individuals from Mainland China and abroad, with five of these international buyers acquiring two properties apiece. An overseas purchaser invested approximately HK$147.3 million in two four-bedroom units, one of which was priced at HK$82 million.
Experts credited the project’s success – benefiting from an advantageous position with views of Deep Water Bay and proximity to public transportation – to bolstering market confidence and decreasing interest rates.
The one-month Hong Kong Interbank Offered Rate (Hibor), associated with mortgage loans, has dropped to its lowest level in almost three years.
Experts mentioned that during the fourth year of a decline in the real estate market, prices have dropped by around 30 percent from their peak levels historically, which presents an opportunity for potential purchasers to join the market.
The anticipated success of the initiative was meant to offer some financial respite to the financially strained NWD. The company announced on Friday that it would delay interest payments, scheduled for June, on four perpetual bonds totaling $3.4 billion U.S., as stated in a filing made to Hong Kong’s stock exchange. As of the previous year-end, their net debt amounted to over HK$124.6 billion.
In an effort to boost confidence, the company said on Friday in a separate statement that it had achieved sales of around HK$24.8 billion for the year, over 95 per cent of its annual sales target.
Should Hibor stay at its current level, NWD — which holds a significant portion of variable-interest loans — would likely see substantial gains as one of the top beneficiaries, noted Raymond Cheng, managing director at CGS International Securities in Hong Kong, in his research report released on Monday.
The sentiment in Hong Kong’s property market has recently become more positive, with home buyers—particularly many from Mainland China—purchasing newly built homes at reduced rates due to an ascending stock market.
Famous personalities and affluent backers have similarly hastened to acquire opulent residences, causing prices of premium estates to plummet by up to 45 percent from their highest points.
Earlier this week, Shirley Peng Shiao Ping, the sibling of ex-Hong Kong Chief Executive Tung Chee-hwa,
purchased a property worth HK$119 million (US$15.2 million) in the Mid-Levels district
.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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