Dream house fetches $250m

PUBLISHED : Wednesday, 09 December, 1998, 12:00am
UPDATED : Wednesday, 09 December, 1998, 12:00am

A mystery buyer yesterday paid $250 million for the so-called Dream House at 37 Deep Water Bay Road on the south side of Hong Kong Island.

The house, built by National Electronics Holdings, has a gross floor area of 16,148 square feet and fetched $15,481 per square foot, according to property agents familiar with the deal.

This is considerably less than the $19,000 per square foot paid by Wong Kwan for the Skyhigh residence on the Peak and reflects the severe downturn in the market over the past year.

The four-level house has four living rooms, seven bedrooms and a swimming pool.

National Electronics bought the 50,000 sq ft site for $200 million in 1994, according to property agents.

The company then demolished the two-storey building on the site and had recently completed the present house.

Based on the book value of the property, valued at $278.86 million on November 30, and the construction cost of about $27 million, the disposal represented a book loss of about $55.86 million, the company said.

National Electronics, which makes electronic watches and telecommunications equipment, last night said the sale would improve the company's liquidity position and increase its general working capital.

Property agents said work on the exterior of the house had been completed and some work on the inside still needed to be done.

National Electronics has another development in the Tai Tam area.

Property agents said the sale would provide a slight boost to the luxury property market where prices have increased by more than 10 per cent since October.