Only one blue-chip estate worth $100b amid slump

Only one of Hong Kong's 10 major housing estates is still worth over HK$100 billion compared to the peak of 2021, when six of them were worth that much, says Centaline Property Agency.

Six of the 10 estates had a market value of more than HK$100 billion at the peak in August 2021, but Taikoo Shing in Quarry Bay is now the only one left amid the downturn in the local property market.

The five major estates whose market values have fallen below the level include Mei Foo Sun Chuen in Lai Chi Kok, South Horizons in Ap Lei Chau, Whampoa Garden in Hung Hom, Residence Bel-Air in the southern district of Hong Kong Island and Kingswood Villas in Tin Shui Wai.

Among them, Mei Foo Sun Chuen's total market value plummeted 34 percent to about HK$89.89 billion, which translates to an average depreciation of about HK$3.56 million per owner.

Homeowners at Residence Bel-Air suffered the most, as each on average suffered a paper loss of HK$11.47 million, with the total value of the project plunging 27.8 percent to HK$82.13 billion.

This came as the number of deals at the 10 major estates remained quiet over the weekend as buyers await the upcoming government budget this week.

Centaline Property Agency reported six deals in 10 blue-chip estates, compared to seven cases a week ago. Midland Realty too posted six deals, with the number stuck in the single digits for the sixth consecutive week.

Potential buyers were taking a wait-and-see approach ahead of Financial Secretary Paul Chan Mo-po's budget speech this Wednesday, said Sammy Po Siu-ming, chief executive of Midland's residential division for Hong Kong and Macau.

But it is worth noting that there was good news for the local economy recently including the Chinese government's supportive measures to boost the property and financial markets and the expansion of the individual visit scheme in Hong Kong, said Po. Coupled with the fact that major developers are planning to speed up the launch of new flats, Po believes the primary market will regain momentum.

In the primary market, Henderson Land Development's (0012) Belgravia Place on Berwick Street in Shek Kip Mei has received 180 checks on Saturday after launching the batch of 148 flats.