Sichuan Tycoon’s 35% Loss on Hong Kong Flat Sale Reflects Market Sentiment Amid Interest Rate Cuts

Tuesday, 12 November 2024, 10:33

Sichuan tycoon An Zhifu sold a Hong Kong flat for 35% less than its original price. The sale, amidst interest rate cuts by the Hong Kong Monetary Authority, indicates a shift in market sentiment, as buyers seek bargains. Recent changes in borrowing regulations have contributed to a more favorable environment for property transactions.
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Sichuan Tycoon’s 35% Loss on Hong Kong Flat Sale Reflects Market Sentiment Amid Interest Rate Cuts

Sichuan tycoon An Zhifu recently dumped a luxury flat in Hong Kong’s Mid-Levels at a 35% discount. This 1,674 sq ft duplex in the Alassio project, developed by Swire Properties, was sold for HK$65 million (US$8.35 million), significantly lower than the previous sale price of HK$101 million in 2016. The flat was sold on November 6 after initially being listed at HK$110 million.

According to Tyrone Tse from Centaline Property, the sale reflects a trend where mainland homeowners are selling luxury properties purchased during a market surge due to various pressures. The recent cuts by the US Federal Reserve and the Hong Kong Monetary Authority have boosted market sentiment, encouraging more transactions.

Lucia Leung from Knight Frank noted a growing interest from investors in the luxury market, especially for distressed properties. While prices for luxury homes remain relatively stable, distressed sales may see larger price reductions.

Notably, Chen Zhuolin, chairman of the troubled Agile Group, also sold properties at steep discounts recently, underscoring shifting dynamics in the market. In October, luxury property transactions surged, indicating a potential recovery in Hong Kong’s real estate sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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