Rich Chinese Offloading HK Flats

Some Chinese owners are selling their flats in Mid-Levels

Not only are locals and expats offloading their properties to leave the city, but also mainland Chinese who need to cover their stock market losses.

About 10 to 20 percent of mainland homeowners in Mid-Levels have reduced their prices because they are in urgent need of funds or are shedding their holdings, said Samuel Lai, senior direct sales director at Midland Realty.

"Homeowners in urgent need of money may cash in for having burnt their fingers in the stock market," said Lai, who anticipates another 5 to 8 percent will lower their asking prices until the pandemic and stock market volatility ease.

One buyer is offloading his flat at The Morgan

However, who is willing to buy now? Prices could go down even further in the coming months, and these transactions may take a few months to be completed. Perhaps even worse, the current fifth wave has made potential buyers anxious about even viewing the flats, thus further stalling the property market.

Hong Kong's stock market has been a rollercoaster ride in the past two weeks with mainland Chinese tech stocks taking a serious beating, and on top of it the war in Ukraine and the rise in Covid-19 cases in China causing jitters.

Property owners in Mid-Levels have cut prices by up to 15 percent since Lunar New Year because of the aggravating factors, said Lai, adding that prices may fall further by another 5 percent until midyear.

Sun Hongbing is the younger brother of mainland Chinese developer Sunac China Holdings' chairman, who sold three luxury flats at The Morgan and Arezzo in West Mid-Levels at a loss of a whopping HK$126 million (US$16.10 million) this year.

Another flat is at Arezzo on Seymour Road

He sold the 2,343 sq ft flat with a 460 sq ft rooftop at The Morgan for HK$138 million, 27 percent lower than the HK$189 million he bought it for in October 2018. The overall loss totalled HK$109 million, the biggest loss since the coronavirus pandemic erupted two years ago, if the 30 percent stamp duty is taken into account.

The creditors of another Chinese tycoon from Zhejiang province put two foreclosed duplex flats and two parking spaces at Marinella in Wong Chuk Hang for sale at HK$283 million. 

Looks like things are financially tight for everyone...