HSBC is selling its prestigious luxury property on the Peak as the housing market is clouded by the uncertain outlook for interest rates.
The banking giant has offered its Fung Shui development, now serving as senior staff quarters, for sale through public tender.
The property, at the junction of Pollock's Road and Plantation Road, has an estimated value of $750 million - the largest luxury residential site up for sale this year.
Property consultants said the tender was made as the property sector, including luxury properties, was affected by the uncertainty surrounding interest rates.
Landscope Surveyors managing director Koh Keng-shing said: 'The number of transactions for luxury residential properties has dropped this year. If interest rates continue to rise, the property market will be hit definitely.'
BOCI expects that the housing sector will remain flat this year because of the interest rate overhang.
The luxury residential market has rebounded from its trough in 2003. By early last year, average flat prices had increased 30 per cent to about $13,000, a research report by Colliers International Hong Kong says.