(Bloomberg) -- A mansion in Hong Kong has been sold for HK$360 million ($46 million), at about 60% of what agents estimated, adding to a growing list of luxury properties trading at heavy discounts.
A house at 8 Purves Road, located in the Jardine’s Lookout area in Wan Chai, has been sold to an entity called Talent Ample Ltd., according to land registry records. The property is a two-storey detached house with a site area of about 9,814 square feet (912 square meters).
The house was put on sale by Jones Lang LaSalle Inc. and Savills Plc., who had been appointed by receivers Acclime Corporate Advisory (Hong Kong) Ltd. as sole agents in April.
The firms said at that time that the property was estimated to be worth about HK$600 million. Luxury properties in that area have been rarely available for sale, it added. Hong Kong Economic Journal reported the story earlier.
Read: Rich Hong Kong Families Sell Mansions at Discounts to Repay Debt
Wealthy buyers are taking advantage of Hong Kong’s prolonged property downturn, as owners offload assets to pay off debt. About 75% of high-end property transactions — those worth more than $10 million each — in the first half of the year involved financially stressed sellers, according to data from CBRE Group Inc.
A number of luxury residences are now under the control of receivers, who are generally more willing to cut asking prices, said Raymond Ho, executive director of capital markets at JLL. Prices of such properties have dropped 14.2% from the market peak in the second quarter of 2019, according to JLL.
“This sharp price correction in the luxury residential market has started to attract local and mainland Chinese buyers,” Ho said. Such prices “will stay at the low level in the short run.”
(Updates with comment from JLL in the last two paragraphs. An earlier version corrected the size of the discount.)
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