Luxury owners hit by negative equity
About 17 per cent of owners in the 10 most popular luxury residential developments on Hong Kong Island suffer from negative equity, according to a survey.
Jacob Wong Yiu-tong, director of the residential department at Treasure Land Property Consultants, said 743 units at the developments, worth HK$8 billion, were in negative equity.
'Most of these . . . units will become forfeited properties if the sale prices in the luxury market keep falling,' Mr Wong said.
The 10 most actively traded developments listed include Dynasty Court, Clovelly Court, Tregunter Tower, Robinson Place, Hong Kong Parkview, Convention Plaza, Pacific View, Hillsborough Court, Cavendish Heights and Beverly Hill.
Among them, 28 per cent of units in Dynasty Court and 24 per cent of units in Tregunter Tower were affected, Treasure Land said.
Mr Wong said the latest average price of Tregunter Tower Three was HK$8,842 per square foot, compared with HK$18,985 in 1997.