Hong Kong’s repo man is back at work in the property sector, as harsh economy and falling house prices fuel surge in foreclosures
A foreclosed luxury property at 39 Conduit Road sold at auction Thursday for 20 per cent below its purchase price less than two years ago
Property foreclosures in Hong Kong continue to mount as home prices deflate, and analysts warn there could be more borrowers failing to pay mortgages on time as the downtrend continues.
On Thursday, one high-end luxury apartment sold in a foreclosure auction 20 per cent below the price paid by a mainland company to acquire the property less than two years earlier.
The 2,476 square foot foreclosed unit at Unit B on the 39th floor at 39 Conduit Road sold for HK$108.3 million, 19.7 per cent or HK$26.6 million below its HK$134.9 million purchase paid in June 2014. The transaction price converts to an average HK$40,000 per square feet.
“Foreclosed properties have doubled in Hong Kong from a year ago,” said Henry Choi, a director at Century 21 Surveyor and the sales agent of the unit at 39 Conduit Road.
Choi said there are about 130 foreclosed properties available for auction now, compared to 60 in the same period last year.
The unit at 39 Conduit Road, according to Land Registry, was previously owned by United Sunrise, a mainland company which listed as its directors Yin Cong and Chan Wai Yung.
