Former home of Hong Kong actor Nicholas Tse sells for a loss of US $ 1.8 million, casts a shadow over city’s luxury housing market
Actor and singer Nicholas Tse’s former home in Hong Kong’s Southern District was recently sold for a loss of up to HK $ 14 million ($ 1.8 million), casting a shadow over the city’s luxury housing market.
The 2,583-square-foot home on the Redhill Peninsula was sold this week for HK $ 60 million, or HK $ 23,229 per square foot, agents said. Its former owners bought the house for HK $ 70 million in 2012, according to land registry documents. When expenses such as stamp duties and commissions are included, their loss on the property amounts to approximately HK $ 14 million, the largest reported loss in a real estate transaction since the introduction of the national security law.
The sale price is also 11.8% lower than the asking price of HK $ 68 million, agents said. It’s also 25% less than the HK $ 80 million that a neighboring house of the same square footage sold in January 2019.
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“The price is shocking,” said Louis Ho, senior sales manager for Centaline Property Agency. “The house had been on the market for some time. The owners probably didn’t want to wait – the price reduction was significant.
“It’s harder to sell,” because the house is relatively far from the city center, Ho said. “When the National Security Law came to light, coupled with social unrest, the market cooled,” he added.
Ho said the law had divided homeowners, with some seeking to leave Hong Kong and thereby lowering asking prices for real estate, while others felt more secure and looked to invest.
“Some owners are in a hurry because of the national security law. Some owners want to emigrate or cash in, and are more aggressive [in offering discounts]Ho said.
The law was likely to encourage some to sell their properties, he said. Villas, especially older ones, have tended to come under further downward pressure on prices. “Those who want to sell have to keep prices low,” Ho said.
Others felt there was more stability now and felt more secure, Ho said. Low interest rates and quantitative easing have also encouraged some to modernize their homes and speed up investments, he added.
“Several dozen potential buyers had visited the house in the past two weeks. There is no other home available at such a price, ”said Elton Leung, branch manager at Ricacorp Properties, adding that the cheapest home offered in Redhill was a property measuring approximately 2,700 square feet and that ‘it cost HK $ 67 million.
He said some homeowners might accept discounts of 5-10%, and that “there could still be trading at a loss. [in the luxury housing market]”.
Tse’s father, actor Patrick Tse Yin, bought the house for HK $ 28 million in 1996 from Tse Brother’s (Hong Kong) company. The youngest Tse became another director of the company in 1999. They sold it to Ho Tat Land Investment for HK $ 18 million in 2000, after the dot-com bubble burst.
Other celebrities who own homes in Redhill include singer and actress Charlene Choi and singer mother Joey Yung.
Meanwhile, other developments have also reported losses in the secondary market. For example, a 2,031 square foot villa sold for HK $ 23.5 million, which is a loss of about HK $ 6 million when expenses are included, in Beverly Hills at Tai Po in the middle of last month.
“Uncertainty in the residential market has increased, given the deterioration of the job market and the deterioration of US-China relations,” said Martin Wong, associate director of research and consulting in Greater China at Knight Frank . “Since house price fluctuations generally follow economic and employment conditions, the negative effects of the contraction in economic activity on the residential market could gradually emerge later this year.”
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