Sale collapses and Hong Kong property cools
June 17, 2010 - Hong Kong
Heralded as one of the world's most expensive property deals at HKD88,000 / US$11,300 per sqft when the sale was announced in October last year, developers Henderson Land announced this week that the sale of the penthouse, alongside 19 other units, has fallen through at its 39 Conduit Road development (pictured below).
With the news that the sale of a 6,158 sqft duplex penthouse in the mid-levels district has collapsed, the long awaited cooling of Hong Kong's property market now seems certain.
But with the collapse in sales of 20 units in the development, authorities in Hong Kong have promised to investigate the circumstances.
However, some have welcomed the collapse as proof that Hong Kong's market has finally started to cool, realigning itself with realistic market demand.
The collapse comes after fears of a property bubble last year and the government stepped in with new regulations limiting some sales strategies and demanding greater transparency from developers.
Though property prices have still appreciated this year by 5%, this is a marked departure from last year's 29% increase.
This has not, however, stopped speculation.
Henderson Land have announced that they will be placing the units back on the market with no change in prices. "I may be able to sell them for more," Tycoon Lee Shau-kee, chairman of Henderson, was quoted as saying in the South China Morning Post.
Via Property Report
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