Chinese Tycoons Sell Luxury Homes in Hong Kong at Significant Discounts

Last week, An Zhifu, president of Sichuan-based Fulin Group, sold a luxury flat in Hong Kong's affluent Mid-Levels residential area at HK$65 million, a 35% reduction from its last sale price in 2016, as reported by the South China Morning Post.

Similarly, Ho Shung Pun, director of real estate investment firm Kowloon Investment Company, had to offload seven luxury homes at considerable discounts earlier this year.

But perhaps the most notable transactions involved European-style residences previously owned by Hui Ka Yan, chairman of the former property giant China Evergrande. These properties, seized by creditors after the company collapsed, were worth a total of over US$190 million.

High-end luxury property sales have been largely driven by so-called "distressed sellers," whose homes have been repossessed by banks or creditors to recoup unpaid debts, Hannah Jeong, an executive director at real estate services firm CBRE, told The New York Times.

Some of these sellers are tied to the Chinese economy, which has seen slowed growth and falling prices. With Hong Kong's economy and real estate market closely linked to the mainland, they too are experiencing the impact.