Hong Kong’s luxury homes market shows signs of life as waves of price discounts entice some bottom fishing

Hong Kong’s luxury home segment, which has been hit by a wave of deep discounts amid soaring interest rates and macroeconomic turbulence, has shown early signs of stability as bottom fishing has emerged in one of the world’s priciest real estate markets.

The city’s luxury property prices fell by around 8 per cent in 2023, and 15 per cent from the peak in July 2018, according to CBRE. But a total of 173 deals involving units priced at US$10 million or more were recorded last year, a 31 per cent year-on-year increase, according to Knight Frank. Value volumes rose 13 per cent year on year to HK$25.5 billion.

A three-storey detached house located at 15 Moorsom, Jardine’s Lookout with an area of about 3,154 sq ft and two parking spaces, has been put up for sale at a 17 per cent discount, according to Savills Hong Kong, which has been appointed property agent for the sale.

The asking price has been lowered to HK$190 million from HK$230 million by the owners, a local business family, according to Thomas See, senior associate director, investment CEO office of Savills.

“The reduction in prices is due to reasons like high interest rates and macroeconomic uncertainties,” See said on Monday, adding that discounted prices are an emerging trend as “buyers will not purchase properties at market price nowadays and they will show more interest to those which are below”.