Hong Kong property

Super-rich still love to buy super luxury homes despite economic uncertainties in Hong Kong

Company linked to Kingston Financial chairman Nicholas Chu buys house in Stanley for HK$1.02 billion

PUBLISHED : Wednesday, 17 February, 2016, 8:59pm
UPDATED : Wednesday, 17 February, 2016, 9:06pm

Recent stock market turbulence and a weakening economic outlook have not detracted from the uber-wealthy’s interest in buying super luxury residential properties in Hong Kong, with a detached house at Headland Road, Stanley, selling for HK$1.02 billion.

The deal, the most expensive luxury home transaction in Hong Kong this year, came six months after Alibaba executive chairman Jack Ma Yun set the record for the city’s most expensive residential purchase when he bought a 9,890 sq ft, three-storey house at Barker Road, The Peak, for HK$1.5 billion.

The buyer of the house at 2 Headland Road is a company called Golden Sea, according to the Land Registry. Nicholas Chu Yuk-yui, chairman of Hong Kong-listed Kingston Financial, is a director.

The luxury housing market’s outlook is not bad
Pollyanna Chu, Kingston Financial

Chu was unavailable for comment but his wife, Pollyanna Chu Li Yuet-wah, Kingston Financial’s chief executive and also an executive director, confirmed the deal.

On behalf of her husband, she said “the purchase is for investment purposes”.

“The luxury housing market’s outlook is not bad,” she said.

Property consultants said the transaction showed that rare, single-house lots in prestigious areas were still highly sought after.

“The supply of super luxury houses is rare, accounting for less than 1 per cent of the city’s total supply, it will always attract affluent individuals locally and from the mainland,” said Thomas Lam, head of valuation and consultancy at Knight Frank.

“ As the super-rich look to diversify their assets given the country’s slowing economy, they will continue to buy rare property assets in Hong Kong.”

He estimated half the buyers in 10 luxury deals last year were from the mainland.

The property at Headland Road is a three-storey detached house with about 11,937 sq ft of saleable area on a 22,438 sq ft site. The price represents HK$85,448 per sq ft of saleable area.

But the property carries redevelopment potential, according to property consultants.

It can be redeveloped into a house with a maximum gross floor area of approximately 16,829 sq ft on the basis of the maximum plot ratio of 0.75.

Agents said the buyer of the Headland Road house was required to pay total stamp duties of about HK$240 million. They include the double stamp duty for a buyer who is a non-resident or a company and the extra 15 per cent buyers’ stamp duty on locals and companies owned by locals or foreigners.