Record-Breaking Sales in Hong Kong's Luxury Housing Market

In an unprecedented event, all 138 luxury apartments in the Wong Chuk Hang neighborhood were sold within just seven hours on Saturday morning. The sales generated a staggering HK$1.53 billion (US$196 million), as reported by property agents cited by the South China Morning Post.

Unmatched Pricing Strategy

The apartments, which ranged from two to four bedrooms, were priced between HK$8.5 million and HK$37.2 million each. Averaging around HK$21,000 per square foot (US$28,800 per square meter), these prices set a new record low for new homes in the area, according to Bloomberg.

An aerial photo shows a view of Hong Kong Island and Victoria Harbour at sunset on May 19, 2025. Photo by AFP

Developer and Market Reaction

Developed by New World, the flagship property firm of the billionaire Cheng family, the Deep Water Pavilia project has attracted both end users and investors. Louis Chan Wing-kit, CEO of Centaline Property Agency, highlighted the project's appeal due to its competitive pricing and prime location above a mass transit railway station.

Investor and End User Interest

Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau, noted that approximately 40% of the buyers were investors looking for rental income, with the remaining 60% being end users.

Financial Implications for New World

The successful sales are anticipated to provide a significant financial boost to New World, which has been facing increasing financial pressures. Recent reports indicate the developer's decision to defer US$77.2 million in coupon payments on four perpetual bonds, highlighting the challenges within Hong Kong's property sector.

Looking Ahead

With one of the highest debt ratios among its peers, New World is under pressure to secure refinancing for HK$87.5 billion in borrowings by the end of June. The Cheng family, Hong Kong’s third-richest, is also navigating through succession challenges, adding another layer of complexity to the company's future.