Hong Kong property

Chinese buyer rewrites Hong Kong record books with US$755 million for Shouson Hill luxury site

Agents believes super luxury homes on the site will easily fetch upwards of HK$135,000 per sq ft, nearly 60pc more than the HK$85,927 per sq ft paid by the buyer

PUBLISHED : Friday, 20 July, 2018, 8:31am
UPDATED : Friday, 20 July, 2018, 8:38am

Chinese companies’ appetite for Hong Kong property shows no signs of abating, with a luxury development near Deep Water Bay selling for a record HK$5.93 billion (US$755.4 million), the largest single transaction by value in the residential market, according to Land Registry data released on Thursday.

“It is a record in the private residential site sales market in terms of consideration,” said Cathie Chung, national director of research at JLL, adding that the deal for 39 Shouson Hill Road has smashed the previous HK$5.1 billion set during the sale of HoTung Gardens on The Peak in 2015.

“It is a rare site to find on the market – like a collectible,” she said.

In an uncanny coincidence, the names of the three directors of the buyer, Charm Glory Resources, match that of the officials of Hong Kong-listed China Resources Land.

It is a rare site to find on the market – like a collectible
Cathie Chung, national director of research, JLL

Charm Glory’s Tang Yong is the vice-chairman, while Xie Ji and Yu Jian are executive directors at China Resources Land.

China Resources Land’s investor relations director Li Ling, who was listed as the company secretary for Charm Glory, was unavailable for comment.

The mainland developer owns 44.85 million square metres of development and investment property in 56 cities including Shenzhen, Shanghai and Beijing and reported a core profit of HK$19.2 billion (US$2.44 billion) in 2017.

Upon redevelopment, Chung believes the houses that will be built on the site could fetch HK$135,000 per square foot or more in terms of saleable area.

HK$2.1 billion Peak home purchase partly funded by Shenzhen property transfer in deal that has Hong Kong real estate buzzing

Thomas Lam, senior director at Knight Frank, said the high price was mainly because of the plot’s redevelopment value.

“The buyer will probably demolish the existing buildings and redevelop it into super deluxe houses,” he said.

The site, currently occupied by two residential blocks with a total of 12 units, could yield a total gross floor area of 69,000 sq ft, which translates to HK$85,927 per sq ft, Lam said.

He said 50 per cent of top 50 most expensive houses in Hong Kong in recent times have been acquired by mainland investors as “these ultra rich buyers prefer super large houses at about 8,000 to 10,000 sq ft each”.

For example, Hong Kong’s most expensive mansion is owned by Chen Hongtian, chairman of Shenzhen-based Cheung Kei Group. He paid a record HK$2.1 billion for a 9,212 sq ft house at 15 Gough Hill Road on The Peak in 2016.

Separately, New World Development on Thursday raised prices for the last six units at The Pavilia Bay in Tsuen Wan by as much as 23 per cent.

The new listed price for a 421 sq ft one-bedroom flat has gone up to HK$13.88 million from HK$11.29 million six months ago. After factoring in as much as 13.5 per cent, it said the unit will cost HK$12.01 million.

Agents said that the new price would make it the most expensive such apartment in terms of price per sq ft in Tsuen Wan, said agents.

New World Development said earlier it had sold 977 flats, or 99 per cent of the units at The Pavilia Bay for more than HK$10.1 billion.