Gale Well offloads Stanley luxury project for HK$310 mln at 44pc discount

Local property investment firm Gale Well Group has sold the luxury project Villa Martini at 8 Stanley Beach Road for HK$310 million, about 44 percent below the purchase price six years ago.

The buyer is said to be a local investor familiar with Hong Kong Island’s Southern District who saw the transaction as a buying opportunity following the steep decline in luxury home prices. The property is estimated to generate a rental yield of more than 3 percent.

Gale Well had put the property on the market earlier this year with an asking price of HK$520 million, before cutting it to HK$400 million in August and eventually agreeing to sell it for HK$310 million, representing a total price reduction of about 40 percent.

The firm acquired the property in 2019 for HK$550 million and has held it for about six years.

The site comprises three low-rise residential blocks, each three storeys high, providing a total of nine units with an average size of about 2,095 square feet, along with 10 car parking spaces.

Gale Well has been leasing out the property, with one unit rented in May for HK$90,000 per month. Market estimates put total monthly rental income at around HK$810,000, implying a yield of about 3.1 percent.