Wealthy owners opt for selling by sealed tender
Sealed tenders have become wealthy property owners' preferred method for house sales, Jackie Langridge, director with First Pacific Davies (FPD) and head of its prestige home division, says.
She said that luxury-home owners preferred to sell their properties this way as against a private treaty arrangement because it was more efficient.
Estate agents said the private tender's one-month deadline took months off the process of selling a property compared with a private treaty arrangement.
Wealthy people did not like their homes opened up for long periods as was the case under a private treaty arrangement, they said.
FPD staff said they did not think owners were using the shorter selling time to recoup their investments more quickly to quit the territory before the handover.
Raymond Ho, executive director with FPD, said selling by tender was successful because it had proven to be a very efficient way of achieving the best possible price.
He said that for every local Chinese selling his property there was another one willing to buy it.
FPD staff said the most likely reason for selling was that the owner's children had grown up and the parents wanted to move to a smaller home.
'These are older families and their kids have grown up and so they are moving,' Ms Langridge said.
In some cases, families want to cash in on their home investment, which they may have owned for decades.
'With so little supply in the territory for such houses, the prices go on increasing,' she said.
This year First Pacific Davies has sold 40 Island Road for $163 million, 13 Bowen Road ($103 million), Pollock's Path ($85 million) and 1 Peak Road ($190 million).