Wealthy individuals in Hong Kong are facing liquidity challenges in a high-interest rate environment and soft economy, leading to fire-sale property deals. Notable losses include Chen Zhuolin, chairman of Agile Group, who lost US$16 million selling flats at significant discounts. The slump in mainland China's property market is a major factor behind these distress sales, impacting the fortunes of real estate tycoons.
HONG KONG : Hong Kong elites lost billions in property deals in 2024, as wealthy individuals facing liquidity challenges in a high-interest rate environment and soft economy offloaded their assets at fire-sale prices.
The distress sales are a direct consequence of the four-year slump in mainland China’s property market that has eroded the personal fortunes of local and mainland real estate tycoons, such as Hui Ka-yan, the founder of China Evergrande Group. Other high-profile casualties include the family of Ho Shung-pun, the family of late shop king Tang Shing-bor and Cheung Kei Group’s Chen Hongtian.
The firm had also been seeking to refinance an HK$894 million loan facility, using its project on Mount Parker Road in Quarry Bay as collateral, sources previously told the Post. That project was also put up for sale, with receivers seeking HK$3.5 billion or HK$7,800 per square foot, according to local media. Agile’s acquisition cost was about HK$3.3 billion, according to Savills.
“More distress commercial real estate sales are expected as market conditions persist,” Ko said, adding the potential fall in interest rates might lead to increased activity, but the overall market was likely to remain under pressure amid ongoing corrections and financial constraints.
ECONOMY PROPERTY REAL ESTATE LIQUIDITY HONG KONG
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