A foreclosure has occurred for the first time at the luxury residential tower at 39 Conduit Road in the Mid-Levels, the Hong Kong Economic Journal reported Friday.
The mortgage lender is having the unit auctioned with a minimum bid of HK$98 million (US$12.6 million), 25-30 percent below the market and 28.8 percent less than the original owner’s purchase price.
Through a company, the owner paid HK$134.91 million, or HK$54,500 per square foot, for the flat and HK$2.83 million for a parking lot in late 2013.
The company mortgaged the unit three times with banks and financial firms.
The same owner acquired an adjacent unit and a parking lot for HK$138 million, as well as an office in Shun Tak Centre West Tower the same year for HK$120 million.
The office was sold by lenders last month for HK$113 million, and the remaining luxury home is on its sixth mortgage for a total loan of HK$93.2 million.
Analysts expect the total number of foreclosed properties in the city to top 1,000 by the end of this year, tripling the number at the moment, given an aggregate decline of over 30 percent in the prices of luxury homes.
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