4th January 2025 – (Hong Kong) The Hong Kong property market continues to decline, leaving many investors in dire straits. While those who purchased properties at lower prices in previous years may still see substantial gains, recent buyers who entered at high prices are now grappling with major losses.
A notable case involves the Tang family, whose building on Granville Road in Tsim Sha Tsui has recently fallen into foreclosure. The property sold for approximately HK$6.3 million, a sharp contrast to the HK$300 million they paid in 2018 during a period of aggressive expansion. This latest transaction reflects a dramatic loss in value of nearly 80%.
The building, located at 32A Granville Road, is a three-story structure with five units and a total area of about 3,709 square feet. Originally acquired for around HK$300 million, the property was listed for sale at a significantly reduced price of HK$70 million before eventually selling for HK$6.3 million —a staggering 79% drop from the original purchase price.
You might wonder why the property was purchased for such a high price in 2018. At that time, the market was thriving, with many old buildings being acquired for redevelopment. The Tang family, heavily invested in expanding their hotel and real estate portfolio, was actively seeking new opportunities.
Additionally, a neighbouring building at 32 Granville Road was sold for HK$280 million in the same year, further illustrating the strong market conditions of the time. This context makes the Tang family’s investment seem less extravagant in comparison.
The new buyer of the Granville Road property is reportedly a member of a well-established real estate family from Macau, who has recently been scouting investment opportunities in Hong Kong.
Currently, the building is leased to a claw machine business and residential tenants, generating a total monthly rental income of approximately 92,000 HKD, yielding an annual return of about 1.75%.
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