A HK$550 million (US$70.2 million) Hong Kong luxury property linked to China Evergrande Group’s founder Hui Ka-yan has been put up for sale by receivers. Agents expect a short-term boost for the ultra-luxury segment following the end of decade-old property curbs in this week’s budget.
The property, 10E on Black’s Link, in the prestigious Peak area, is a three-storey detached house with an area of 4,933 square feet.
Savills, the agent responsible for the sale, is inviting tenders for the property, which closes on April 22. The HK$550 million valuation is based on market estimates.
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Last November, Evergrande’s creditor Orix Asia Capital appointed Cosimo Borrelli and Tang Tak Yeung as receivers for two adjacent homes, 10C and 10E on Black’s Link, according to filings with the Land Registry. The two properties are linked to Hui through his associate Tan Haijun, who is listed as the director of Giant Hill, the company that owns the two houses. Another of Hui’s mansions on Black’s Link, 10B, was put up for sale in March 2022.
Hui resigned as director of Giant Hill on July 30, 2021, with Tan taking over on the same day. In late January, the Hong Kong High Court approved a petition by creditors to liquidate the world’s most indebted property developer with some US$328 billion in liabilities, in the biggest such case seen in the city.
Thomas See, a senior associate director at Savills, said another house, 10C, which is also linked to the Evergrande founder, will be put up for sale soon as the property is in the process of being vacated.
“The removal of stamp duties will directly have a short-term stimulus on transactions,” See said. “It’s a good sign for mainland and overseas buyers.”
Hong Kong scrapped its decade-old property market curbs this week in a drastic bid to revive the ailing sector. Property prices fell for the ninth straight month in January, dragging the official home price index down to a seven-year low. Prices of lived-in homes have slumped 23 per cent from a record high in September 2021.
The measures withdrawn include Buyer’s Stamp Duty that targeted non-permanent residents and a New Residential Stamp Duty for second-time purchasers. Also, homeowners will no longer be required to pay a Special Stamp Duty if they sell within two years.
Even before the budget announcement, the luxury property market had shown signs of a revival, as waves of price discounts enticed bargain hunters.
Last month, a mainland Chinese buyer linked to the founder of Mindray Bio-Medical Electronics, snapped up an ultra-luxury house on The Peak at a 35 per cent discount. The mansion, 25-26 A&B Lugard Road, sold for HK$838 million, or HK$71,703 per square foot, according to Savills.
“We have seen a 70 per cent increase in traffic for people looking to buy on our website and a 750 per cent increase in people checking about the updated stamp duty requirements,” said Victoria Allan, founder and managing director of real estate agency Habitat Property.
The Hong Kong Monetary Authority on Wednesday, in tandem with easing of property curbs, relaxed lending policies, offering higher mortgage loans to bolster the housing market.
Property valued at more than HK$35 million, considered luxury homes in Hong Kong, will be entitled to 60 per cent mortgage, from 50 per cent previously.
The removal of restrictions may attract more buyers who could see this as an investment opportunity, said Sdever Li, director for residential services at Savills.
“However, market trends can be influenced by various factors, so it’s essential to monitor the situation closely to see how it unfolds in the coming months.”
More from South China Morning Post:
- Hong Kong’s luxury homes market shows signs of life as waves of price discounts entice some bottom fishing
- Hong Kong mansions, worth US$192 million, linked to China Evergrande founder Hui Ka-yan, seized by creditor
- Why home prices in Hong Kong won’t rebound despite the removal of property curbs
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