Some Chinese buyers are hitting the panic button, selling their homes for losses as Hong Kong rallies extend into the 12th week
- Relatives of one Chinese billionaire took a US$2.29 million loss on a retail spot at Causeway Place shopping centre
- Number of such loss-making cases may increase if local political turmoil, economic downturn continue
Some mainland Chinese investors who bought properties in Hong Kong at high prices several years ago have panicked amid souring sentiment and sold at big losses of up to HK$8.2 million.
For instance, Xiao Yonghong and Sun Darui, the younger sister and brother-in-law of missing Chinese billionaire Xiao Jianhua – founder of the troubled Tomorrow Group – offloaded a 337 square foot retail unit at Causeway Place shopping centre for HK$18 million (US$2.29 million), incurring a loss of HK$8.23 million or 31.4 per cent after six years.
The number of such loss-making cases may increase if protests continue and the economy does not pick up, said Hendrick Leung, director and general manager at Centaline Finance.
“Mainlanders are interesting. When they want to sell flats, they would not think so much and want to sell it immediately,” said Leung.
At least four properties have been sold in such panicked behaviour since July.