DEMAND FROM CHINA FOR HK PROPERTY CONTINUES

The latest cooling measures did not do much to cool down demand; instead HK recorded the highest price paid for an apartment in Asia days after the clampdown was announced.

Just 3 days after the Hong Kong government doubled the residential stamp duty to 15% for non-first home buyers and 30% for foreign buyers, the most expensive apartments in Asia were sold to a Hong Kong property tycoon.

The 2 adjoining luxury apartments at the Mount Nicholson development in Victoria Peak fetched HK$104,803 (USD13,514) per sq ft making them the most expensive apartments in Asia. Both units, occupying a combined 8,702 sq ft of space cost a total of HKD912 mil (USD117 mil).

The buyer is believed to be billionaire Edwin Leong Siu-hung, chairman and founder of property developer Tai Hung Fai Enterprise. With a net worth of US$3.9 bil, he is ranked 17th among Hong Kong’s 50 richest people tin 2016, according to Forbes.

The new rules which took effect on 5th November had obviously not affected super high-end properties. The previous world record set was HK$103,762 (USD13,380) per sq ft for an apartment in Mid-Levels, Hong Kong. Market observers believe the recent sales were made to children of rich families who did not previously own any properties, thus circumventing the rule.

Around the same time, another buyer purchased four apartments for a lump sum of HK$19.93 mil. By lumping all four units under one agreement, the buyer — who doesn’t own any other property and hence was considered a first-time buyer — was able to avoid the new stamp duty. His savings? About HK$1.6 mil, according to agents.

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