Date
29 March 2017
Residence Bel-Air sales have seen mixed results. The last transaction to hit HK$50,000 per square foot was completed in 2014. The latest sale involved a villa that was sold at a loss. Photo: HKEJ
Residence Bel-Air sales have seen mixed results. The last transaction to hit HK$50,000 per square foot was completed in 2014. The latest sale involved a villa that was sold at a loss. Photo: HKEJ

Owner takes huge loss for luxury villa

A luxury villa in Residence Bel-Air has been sold at a loss after it fetched just HK$30,500 (US$3,931) per square foot, well below the asking price.

The transaction price came to HK$110 million, or a loss of more than HK$63.5 million from the original purchase price five years ago, the Hong Kong Economic Journal reports.

The owner had asked for HK$180 million for the 3,610-square-foot unit in Pok Fu Lam.

Eight other luxury flats had an asking price of HK$200 million to HK$400 million.

The last transaction in the development to top HK$50,000 per square foot or achieve a purchase price above HK$200 million was completed in 2014.

The owner of the loss-making villa, said to be a mainland Chinese, bought the property in November 2011 for HK$166 million.

It has been mortgaged twice — once to a bank in May 2012 and again in 2015 to a finance company.

The sale price is the biggest loss in 10 years for a Hong Kong property, market observers said.

The increasing number of loss-making transactions for luxury properties in Hong Kong might be linked to a slump in the mainland stock market and a weakening renminbi, they said.

[Chinese version中文版]

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