Buyer walks away from HK$88m deal for luxury unit at 39 Conduit Road in Hong Kong

10pc deposit believed to have been forfeited

PUBLISHED : Wednesday, 14 October, 2015, 7:49am
UPDATED : Wednesday, 14 October, 2015, 5:55pm

Negative news about Hong Kong’s housing sector continues to abound, with a buyer walking away from closing a purchase at the 39 Conduit Road luxury development in Western Mid-Levels.

A buyer who signed an agreement to buy an eighth-floor unit for about HK$88 million, roughly HK$40,000 per square foot in May, terminated the purchase on October 13, according to the official website of The Sales of First-hand Residential Properties Authority.

A 10 per cent deposit of about HK$8 million paid by the buyer is believed to have been forfeited.

Developed by Henderson Land Development, 39 Conduit Road has recorded some of the most expensive apartment transactions in Asia.

In April, a company director with a Singaporean passport paid HK$433.8 million or HK$93,000 per square foot for a 4,664 sq ft duplex flat, setting a record for Asia in terms of price per square foot.

But that record was eclipsed by the HK$497.9 million sale of the duplex flat A on the ground and first floors of Opus Hong Kong at 53 Stubbs Road in June, which equated to HK$95,971 per square foot.

In anticipation of a rise in interest rates, and amid concerns over a weakening economy, a growing number of property analysts predict Hong Kong home prices will correct, with some expecting prices could fall by as much as 30 per cent by 2017.

In the secondary market, Centaline Property Agency recorded zero transactions last weekend at 10 housing estates it monitors, the worst result for 21 months.