A unit at Telford Gardens in Kowloon Bay, dubbed a "mega-haunted home" due to a murder case of five women, is set to be auctioned on Wednesday, with the price starting at HK$2.3 million - over 50 percent lower than its market value.
Its owner purchased the 556-square-foot flat for HK$1.1 million in 2007 and currently leases it for HK$11,000 per month. After failing to sell the unit last year for HK$4.98 million, the owner planned to auction the property with a tenancy agreement.
This "haunted home" was the site of the 1998 murders, when feng shui master Lee poisoned five women for financial gain by making them drink water laced with cyanide.
While properties with murders background in Hong Kong were averagely priced 40 to 50 percent below market values, their owners can still book a profit from them.
For instance, an 898-sq-ft unit at Starcrest in Wan Chai, the site of a matricide in 2008, was sold in 2010 for HK$11 million. After holding the property for roughly a decade, its owner resold it in 2020 for HK$20 million, or HK$22,272 per sq ft. Despite being priced at a 40 percent discount to market value, the owner still realized a paper gain of HK$9 million.
Similarly, a 1,596-sq-ft house at Hong Lok Yuen in Tai Po, where saw a triple homicide in 1982, was sold last year priced at HK$10.28 million, or HK$6,441 per sq ft - nearly 50 percent below market value, resulting in a paper gain of HK$1.4 million for the previous owner.
Known as the "King of Haunted Homes," investor Ng said he had previously failed to bid for this Telford Gardens unit but remains interested in acquiring it again, according to Sing Tao Daily, the sister publication of The Standard.
He acknowledged that investing in such properties is a "double-edged sword," presenting difficulties in both leasing and resale, and he suggested potential buyers carefully assess their financial situation and ability to hold the asset for a long term before purchasing it.
