Hong Kong developer Swire Properties withdraws luxury apartments from market amid souring sentiment
Company to hold property as long-term investment
Hong Kong developer Swire Properties withdrew a luxury serviced apartment development in Quarry Bay from the market on Thursday amid souring sentiment.
The developer said it had reviewed plans for Taikoo Place Apartments, which comprises 111 units ranging from 340 sq ft to 1,140 sq ft in area, and had decided to continue holding the property as a long-term investment.
Taikoo Place Apartments will continue to operate as a serviced residence
“By retaining the ownership of Taikoo Place Apartments, the company will be afforded greater flexibility and leverage to further enhance the Taikoo Place community in the future. We arrived at a conclusion that holding the building as a long-term asset would be beneficial to our business as a whole,” the company said in a statement. “Taikoo Place Apartments will continue to operate as a serviced residence.”
The company had said in May it was planning to sell the 28-storey building, which was completed in 2014. Luxury apartments were selling for record-breaking prices at the time, and the company did not renew tenants’ leases that expired this year.
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Vincent Cheung Kiu-cho, deputy managing director for Asia valuations and advisory services at Colliers International, said the withdrawal from sale was because of the abrupt change in market sentiment over the past three months. “The developer may not achieve a price as good as it would have several months ago,” he said.