HK$2.1 billion Peak home purchase partly funded by Shenzhen property transfer in deal that has Hong Kong real estate buzzing
Purchase will be paid partly in cash and partly by the transfer of a commercial property in a non-core area of Shenzhen
The HK$2.1 billion record transaction for a home on Hong Kong’s The Peak has raised questions if it could serve as a benchmark in the super-luxury property market due to its uncommon payment method, according to industry experts.
A company controlled by Shenzhen billionaire Chen Hongtian has agreed to buy the house at 15 Gough Hill Road.
The purchase will be paid partly in cash and partly by the transfer of a commercial property in a non-core area of Shenzhen, according to an announcement released by the seller on Wednesday night.
“It is not a normal way we have seen in the transaction of luxury residential properties ,” said Koh Keng-shing, chief executive of Landscope Christie’s International Real Estate.
“We usually see direct cash deals.”
While pointing out the transaction process is completely legal and it has not suggested any wrongdoing, Koh said it does make it difficult to assess the true value of the property, because other assets were included.