Wednesday, 17 February 2016

Uber Rich Still Bullish on Hong Kong

The property at 2 Headland Road in Stanley sold for over HK$1 billion
The uber rich don't seem to be affected at all by the bearish economic climate in Hong Kong. That's because one of the biggest property deals wrapped up recently, with the sale of a detached home at Headland Road in Stanley for a whopping HK$1.02 billion.

It doesn't eclipse the transaction six months ago when Alibaba executive chairman Jack Ma Yun bought a 9,890 sq ft three-storey house on Barker Road, The Peak for HK$1.5 billion.

The buyer of the home at 2 Headland Road is a company called Golden Sea, with Nicholas Chu Yuk-yui listed as director, and chairman of Hong Kong-listed Kingston Financial.

While Chu was not available to comment, his wife Pollyanna Chu Li Yuet-wah, Kingston Financial's chief executive and executive director, confirmed the transaction.

Apparently this is Jack Ma's home on Barker Road, The Peak
Speaking on behalf of her husband, she said, "the purchase is for investment purposes. The luxury housing market's outlook is not bad".

Easy for her to say...

The Headland Road home is a three-storey detached house with about 11,937 sq ft of saleable area on a 22,438 sq ft site. The price represents HK$85,448 per sq ft of saleable area.

Compare this to the 2015 average monthly salary at HK$14,877.

Analysts say the owner could easily redevelop the land to expand the maximum gross floor area at about 16,289 sq ft.

And with detached homes a highly sought-after commodity, the real estate prices in this niche market will only go higher.

Surely this massive wealth gap isn't healthy...

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