What a difference nine months make – price of Mount Nicholson home drops by US$7 million
- 7,978 sq ft home on The Peak sells for HK$721.88 million
- Decline in price reflects ‘drop in home prices’, says industry observer
A home in Hong Kong’s ultra-exclusive Mount Nicholson neighbourhood on The Peak is the latest victim of souring sentiment in the world’s most expensive property market. On Monday, House 16 sold for 7.4 per cent less – or HK$58.12 million (US$7.42 million) – than House 17, which was sold in April this year.
According to the Sales of First-hand Residential Properties Authority, House 16, with an area of 7,978 sq ft, sold for HK$721.88 million, or HK$90,484 per square foot. House 17, in contrast, with an area of 7,984 sq ft, sold for HK$780 million, or HK$97,695 per square foot.
Wheelock & Company, a co-developer of Mount Nicholson, said House 17 was sold with furnishing.
“House 17 served as a show house,” said a spokesman, who refused to provide the costs involved. Surveyors, however, put the cost at a maximum of HK$32 million, according to which House 16 is still cheaper than House 17.
The difference in prices reflects a souring market, said Billy Mak, an associate professor at the department of finance and decision sciences at Hong Kong’s Baptist University. “The drop in price is similar to the level of drop in home prices [ on the basis of data provided by] the Rating and Valuation Department, and reflects the downward trend in the residential property market,” said Mak, a frequent commentator on Hong Kong’s property market.
The drop in home prices of apartments measuring more than 1,722 sq ft amounted to 5.4 per cent between August and November this year, according to Hong Kong’s Rating and Valuation Department. The overall home prices have slumped by 7.2 per cent after peaking in July, following a 28-month surge that started in April 2016.
Mak said the correction would continue into the first quarter of 2019. “The correction in the property market will not end so soon, as it only started in August and has lasted for four months so far. Previous corrections, after 2003, lasted for about a year.”
House 16 comes with a 5,163 sq ft garden, a 982 sq ft rooftop and a private swimming pool. The tender for the home closed on December 8.
The Mount Nicholson development is Asia’s priciest address, and is home to the region’s three most expensive apartments.
Elsewhere, investment firm Carnival Group said it preferred exiting its property investments before Hong Kong’s property market reported deeper losses. It said it would sell a residential project at 16A-16 D, Shouson Hill Road, for HK$1.86 billion.
“In view of the financing needs of the group, and the current uncertain outlook for the Hong Kong property market, it is more beneficial to the company and its shareholders as a whole to dispose of the residential property project currently under development,” it said in an filing to the Hong Kong stock exchange on Monday.
Mount Nicholson lives up to its top billing as 16 apartments were sold for a total of HK$9.6b in 2017
Carnival said it would generate net proceeds of HK$1.18 billion and intended to use this amount for debt repayments and general working capital. The company did not disclose the buyer of the site.
CK Asset, meanwhile, said on Monday that a buyer had paid more than HK$1 billion for two homes at its luxury development, 90 Repulse Bay.