The $728.88 million paid for the Hotung mansion on The Peak - about $51 million short of the $780 million reserve bid - is an accurate reflection of the market, according to agents.
'The price is about right,' said William Yung Ying-wai, investment sales manager with Colliers Jardine. 'The sentiment in the market has not been all that bullish lately.
'It confirms that the market has a foundation, and that prices have not fallen too fast.' According to several agents, there have been more than 20 luxury properties put on the market by tender in the past two to three months but there have been few reported deals.
Hotung, a classy property at 6-10 Black's Link on The Peak, covers 69,535 square feet and includes a house with a gross floor area of 12,000 sq ft and a huge garden.
It has a developable area of 35,000 sq ft, which means that the buyer paid an accommodation value of about $21,000 per sq ft.
If the property was sold at the reserved price, that would have been pushing the market too fast, said Jackie Langridge, director of the prestige homes division of First Pacific Davies.
According to Ms Langridge, the deal could push sentiment along and help boost the market.
'There are more purchasers this month than last month and this will help push that sentiment along,' she said.