Peak home fetches record HK$2.1b (South China Morning Post)

2016.06.07

Peak home fetches record HK$2.1b

Deal points to wealthy mainlanders looking for luxury houses amid limited supply

A Shenzhen property company owner has agreed to buy a 9,212 sq ft luxury house at 15 Gough Hill Road on The Peak in Hong Kong for about HK$2.1 billion, a record price for the city and among some of the most expensive homes in the world.

The purchase is seen as the latest sign that affluent mainlanders have been snapping up super luxury houses in the city because of their limited supply. It broke the record set by the sale of a 9,890 sq ft home at 22 Barker Road, also on The Peak, for HK$1.5 billion last year.

"I bought (the house) for my own use," said Chen Hongtian, the chairman of Cheung Kei Group, which invests in property, hotels and finance firms in the city.

Chen is also a member of the Chinese People's Political Consultative Conference, a political advisory body.

Chen declined to disclose the price but it is believed the property was sold for about HK$2.1 billion, or HK$220,000 per square foot.

Prices of luxury homes in Hong Kong are expected to fall a further 10 per cent over the next three to six months, with a possible hard landing in themainland economy and increased capital controls restricting Chinese buying interest, according to a research report by Savills in April.

But Knight Frank said that while prices of mass housing and luxury flats had dropped, those of super luxury houses had not.

In the past 12 months, 50 per cent of the top luxury deals involved mainland buyers, Thomas Lam, the head of valuation and consultancy at Knight Frank, said.

The buyers were attracted by niche areas in prestigious locations as such high-end dwellings provide growth potential because of their limited supply.

Chuang's Consortium International has confirmed it was in discussions with a third party to sell the property at 15 Gough Hill Road, according to a company filing to the stock exchange last night. It said no definitive agreement had been reached.

Chuang's, headed by Alan Chuang Shaw-swee, bought the 18,469 sq ft site for HK$166 million in 2006. It had submitted plans to build a six-storey house on the site. According to the company's annual report, it intended to build a house with a unique design.

Chen said the fact the house was not yet complete was good for him. "I can change the layout according to my preferences," he said.

Cheung Kei was founded in 1990, Chen is also a major shareholder in Hong Kong-listed China South City Holdings.