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Cheryl Arcibal

Salina Li

Three luxury Hong Kong homes changed hands this week for between HK$49.4 million (US$6.36 million) and HK$114 million, an indication that well-heeled buyers have returned to the market for exclusive addresses as interest rates come down.
Sebastian Paredes, the CEO of DBS Bank (Hong Kong), paid HK$49.4 million for a 1,249 sq ft, three-bedroom flat at The Aster in Happy Valley, according to Land Registry records. The purchase price was more than twice what the previous owner paid for the property in 2011.
Nicolas Moreau, HSBC’s global asset-management CEO, bought a 2,041 sq ft luxury flat in Century Tower in Mid-Levels for HK$50 million. In 1999, the last time it was on the market, the property was valued at HK$14.8 million, records show.
Meanwhile, Ngai Lun Limited registered as the buyer of a 3,335 sq ft flat in Grenville House – also in Mid-Levels – for HK$114 million. Zhang Jinglin, a Hong Kong ID holder, was registered as director of Ngai Lun, according to official documents. The property previously sold for HK$90 million in 2012.

The sales were registered a week after the policy address of Chief Executive John Lee Ka-chiu, who unveiled several measures to support the property market. That included the easing of mortgage financing as well as allowing investments in residential properties with a transaction value of no less than HK$50 million to be counted in the New Capital Investment Entrant Scheme (CIES).
The scheme was reintroduced in March after having been suspended in 2015 as property purchases by the new migrants helped to send home prices surging.
Under the programme, individuals and their families can get on a fast track to residency if they keep at least HK$30 million in the city’s financial markets for at least seven years. Foreigners, mainland Chinese with a foreign passport, Macau residents and “Chinese residents” of Taiwan are eligible under the programme.

Moreau moved to Hong Kong in late 2021 after HSBC reassigned four of its senior executives out of London, in a bet by the bank’s former CEO Noel Quinn on Asia’s growth.
Following Lee’s policy address, luxury home inquiries have increased by about a third, according to Derek Chan, the head of research at Ricacorp Properties.
“The luxury property market has been underperforming in recent times, affected by both the economic environment and policy changes,” Chan said. “However, recent positive factors have begun to surface, coupled with relaxed policies that permit investment immigrants to purchase luxury properties priced at HK$50 million or above. As a result, a significant recovery is expected in the luxury market from a low base, potentially outperforming mid-sized and smaller residential properties.”

The relaxation of mortgage rules has allowed homebuyers to obtain as much as 70 per cent financing, regardless of the value or use of the property, according to the Hong Kong Monetary Authority (HKMA). The debt-servicing ratio has been raised to 50 per cent from 40 per cent, standardising the level for both residential and non-residential properties, it added. The easing covers commercial property as well.
“Following the policy address, the relaxation of mortgage regulations has expanded the buyer base,” said Chan. “Feedback from the front line indicates a notable increase in interest in luxury properties, with related inquiries rising by 30 per cent.”
The global easing cycle, which was kicked off last month by the US Federal Reserve, has also injected fresh optimism into the market.
“The government’s recent enhancement to the New Capital Investment Entrant Scheme – allowing investments in residential properties valued at HK$50 million or above, coupled with the further relaxation of the maximum loan-to-value ratio, will boost buyers’ confidence and liquidity in investment, which will also enhance transaction volume particularly in luxury properties,” said Thomas Chak, head of capital markets and investment services at Colliers Hong Kong.


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.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Two big deals recorded in Mid-Levels, another one on the books in Happy Valley

Two big deals recorded in Mid-Levels, another one on the books in Happy Valley