Property Tycoon's Loss in Hong Kong Luxury Flat Sales

The chairman of property developer Agile, a 62-year-old tycoon, recently sold units in Hamburg Villa, located in the Kowloon Tong district of Hong Kong, at a significant loss. According to the South China Morning Post, the units were sold for a total of HK$90 million, despite being collectively valued at HK$213 million. One of the units, an 872-square-feet three-bedroom flat, was sold for HK$8 million, which is 63% less than its purchase price of HK$21.4 million in 2018.

These fire sales reflect a broader trend in the property market, where wealthy Chinese individuals have been selling their high-end homes in Hong Kong at massive discounts this year. These sales have largely been driven by so-called "distressed sellers," whose homes were repossessed by banks or creditors to recover unpaid debts, according to The New York Times.

In the residential sector alone, roughly 75% of luxury property transactions in the first half of 2024 were made by financially stressed sellers, according to real estate firm CBRE. Data from property consultancy Savills shows that 23 high-end properties were purchased during the period, a 53% year-on-year increase, as reported by Business Insider.