web hit counter

Luxury home in Redhill Peninsula, where landslide exposed illegal structures, sells for just over half its 2017 price, agents say

40
A luxury home in Redhill Peninsula, the upscale district of Hong Kong where inspectors discovered dozens of suspected illegal structures in the wake of a recent landslide, has sold for just over half what the owner paid for it six years ago, according to property agents.

“The owner just sold 174 Cedar Redhill for HK$60 million (US$14.24 million). They had an uncompleted renovation with basements that need repairs,” said an agent speaking on condition of anonymity.

The property, with a gross floor area of 3,339 square feet according to the website of Centaline Property Agency, was bought for HK$111.5 million in 2017.

“The site was a mess of unfinished works so one has to be very brave to take on the property,” said the agent. “Earlier this year, he also sold 172 Cedar Redhill for HK$80 million.”

Other agents confirmed the deal and said it has been the talk of the industry.

03:02

Landslide reveals illegal basements under luxury Hong Kong homes

Landslide reveals illegal basements under luxury Hong Kong homes

The luxury estate in Tai Tam has come under the close scrutiny of officials since a black rainstorm hit the city early in September, triggering a landslide in the district that affected three houses and revealed illegal structures at four houses in Redhill Peninsula.

The discovery led to the authorities conducting a wider inspection during which they found that more homes had potentially carried out unauthorised building work on their premises. In all, suspected illegal structures were found in another 70 out of the 85 seaside homes that were checked.

The crackdown is likely to have dampened demand for luxury homes in the short term as buyers need more time to ascertain whether a property has illegal structures, according to analysts.

Under Hong Kong law, owners face up to a year in jail and HK$200,000 (US$25,567) in fines for such offences.

Luxury homes, a niche segment accounting for about 2 per cent of the local market, have enjoyed something of a comeback this year, according to data compiled by Knight Frank. The volume shrank by more than 50 per cent in 2022 to the lowest since 2019, according to the consultancy.

Some 135 ultra-luxury units, those priced above US$10 million, changed hands this year to mark a 35 per cent jump from a year earlier, the consultancy said. There were 460 deals involving homes priced above US$5 million, a 31 per cent increase from the volume between January and September last year.

However, given the elevated interest rate environment, the high-end property market is likely to be more volatile in the second half of the year, according to Savills.

“The luxury sector may see volume remain low with prices becoming volatile, as distressed sales may again dominate the market,” the consultancy said in a recent report. “Nevertheless, there may also be some unique houses making headlines with high prices if the right buyers could be found.”

Article was originally published from here

Comments are closed.