Hong Kong luxury home buyer bails, loses $4.6m deposit
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Hong Kong luxury home buyer bails, loses $4.6m deposit

A HOME buyer in Hong Kong has walked out of the purchase of a luxury unit in the city’s most affluent neighbourhood on The Peak, losing some HK$36.09 million (US$4.6 million) in yet another sign of a cooling property market.

According to the South China Morning Post, the unnamed buyer cancelled a transaction for the house on Mount Nicholson after agreeing to buy it for HK$721.88 million (US$91million) on Dec 31.

“It is definitely not good news for the market,” JLL executive director Joseph Tsang, was quoted as saying.

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“There are stories about buyers walking away from their purchases every day, but this one is more eye-catching.”

Situated in Asia’s most expensive address, the house comes with a private garden and swimming pool, and was sold at an eye-watering HK$90,484 (US$11,540) per square foot in December.

The price was more than seven percent cheaper than the adjoining house which was sold in April.

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Hong Kong city view from The Peak at twilight. Source: Shutterstock

Financing was likely the main reason for the cancellation, the co-developer of Mount Nicholson, Wheelock & Company said.

“We tried to approach the buyer. We did not know why the buyer decided not to proceed with the purchase,” Stewart Leung Chi-kin, chairman of Wheelock Properties, a privately run property arm of Wheelock and Co said

He said the five percent deposit was also forfeited, without naming the buyer.

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“The deal was clinched through a representative of the buyer, who is a Hong Kong Identity Card holder,” he said, adding there were three bids for the house when it went on the market.

However, he said he believed the case was isolated and did not affect the super luxury market as a whole.

“[The cancellation] is the first time since we launched the project two and a half years ago,” Leung said.