An upscale house at Hong Kong’s posh Peak area has been sold at more than 20% off its asking price, amid suggestions that an economic slowdown coupled with a global pandemic is forcing owners of luxury properties to cash out.

The 2,363 square foot residence on Severn Road at The Peak changed hands for HK$175 million (US$22.6 million), or HK$74,058 per square foot. The transaction price was some 24 percent below the sales tag of HK$230 million floated a few years ago when the house was first put on the market.

Once dubbed “Asia’s most expensive street,” Severn Road near the top of Victoria Peak on Hong Kong Island boasts an estate of 22 luxury detached houses developed by Sun Hung Kai Properties in 2006.

The gated development is home to a host of Asian billionaires and businesspeople, including Vietnamese businessman Eric Chu and import merchant Christopher Chan, whose firm brings in the Japanese FANCL cosmetic brand.

The latest sale came two years after another house, of 2,378 square feet, on the estate was sold for HK$220 million in June 2018.

Ultra-rich Mainland Chinese own a big chunk of luxury properties in the former British colony. However, an economic slowdown in Hong Kong started by last year’s social unrest and worsened by the global pandemic was set to result in more bargains in the market, with some investors dumping their holdings for quick cash, Charles Chan, managing director of Savills Valuation and Professional Services (Greater China), told Apple Daily. A 5% to 10% drop in prices was expected in the short run, he said.

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