Another Hong Kong buyer has walked away from a contract to buy a multi-million dollar luxury home. Meanwhile, 6 out of 11 super penthouses around the world now on the market are in Singapore. Could these signal waning appetite for high-end homes?
A Hong Kong customer has backed out of buying a $32.11 million (HK$251.23 million) luxury home in the Deep Water Bay neighborhood, marking the second property default in nine days. The unidentified buyer chose to forfeit a HK$12.56 million initial payment made to the developer of the Nan Fung Development.
«More default cases could emerge in the coming months if the U.S.-China trade war fails to settle,» said Vincent Cheung, managing director of Vincorn Consulting and Appraisal Agency, who was quoted in «South China Morning Post». The investment return on luxury homes is at 2 percent, less than the 2.8 percent for mass housing, he added.
Deep Water Bay is located on the southern shores of Hong Kong island, also known as an enclave for some of the city’s wealthiest people, including Li Ka-shing. Nevertheless, the affluent neighborhood is no shelter from the year-long U.S.-China trade war that has buffeted Hong Kong’s economy, which has decimated business sentiment and confidence.
Singapore's Super Penthouses On Sale
In another Asian financial hub, Singapore, six super penthouses are now up for sale, List Sotheby's International Realty (List SIR) said on Wednesday. Super penthouses are penthouses which are 10,000 sq ft and above, according to definitions by the luxury brokerage.
Those located in «super tall» buildings which are 1,000 to 1,900 ft in height, found in major global cities tend to set record prices due to spectacular views offered, List SIR said. The biggest of these «super penthouses» in Singapore is in Wallich Residence, with a floor area of 21,108 sq ft and a building height of 950 feet. Spanning levels 62 to 64, the property has five bedrooms, a family room, a viewing deck, a private garden, a 12 meter pool, a cabana, a jacuzzi, an entertainment room, and bar facilities.