37 Shouson Hill Road: Will buyers pay top dollar for the US government’s prime Hong Kong property?

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Buyers are likely to balk at the HK$3.1 billion to HK$5 billion estimates for the six mansions in the current economic and political climate, say market observers

The property could fetch as much as 20 per cent discount to similar sized plot in the same neighbourhood bought by China Resources in 2018

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The exterior of 37 Shouson Hill Road property. The US government has invited bids for six multi-storey mansions overlooking the Deep Water Bay as part of its global reinvestment programme. Photo: Edmond So

Pearl Liu

Published: 9:14pm, 1 Jun 2020Updated: 5:11pm, 2 Jun 2020

A prime Hong Kong property put on the market by the US government has hardly generated any excitement among the city’s developers, as they weigh the sector’s prospects amid a difficult economic and political climate, while market observers expect the sale may not live up to its top billing.

Last Saturday, the US government invited tenders for six multi-storey mansions at 37 Shouson Hill Road with stunning views of Deep Water Bay. However, market observers said the plot with an area of over 90,000 square feet may not fetch the estimated value of between HK$3.1 billion (US$400 million) and HK$5 billion.

They pointed to the sale of a neighbouring site of a comparable size that fetched less than the estimates for the US government-owned property. Mainland investor, China Resources, paid HK$5.93 billion for 39 Shouson Hill Road in July 2018.

The price could be 10 to 20 per cent lower than the HK$85,000 per sq ft paid by China Resources, said Charles Chan Chiu-kwok, managing director of Savills Valuation and Professional Services. Savills values the property at HK$3.2 billion.

A aerial view of 37 Shouson Hill Road (six multi-storey mansions) on Hong Kong Island on May 30, 2020. The US government calls for bids on the luxury residential properties in the city. Photo: Martin Chan

The developers, however, have put their bean counters to work to see if the numbers work out in their favour.