Sale of potentially record-setting luxury property in Hong Kong falls through

Hong Kong billionaire Lee Shau-kee’s Henderson Land Development said the sale of 20 luxury apartments has collapsed, ending HK$2.67 billion ($478 million) in deals that sparked a government inquiry and fueled efforts to rein in home prices.

Most buyers pulled out of the 39 Conduit Road project in Hong Kong island’s Mid-Levels district, Henderson said in a filing to the stock exchange, responding to government demands for more information on the sales of 24 units. Henderson said it has sold four of the units and will record a charge of HK$734 million in its half-year results.

The failure of the sales, including a unit that would have set a world record price of HK$88,000 per square foot, marks a setback for Hong Kong’s second-richest man as regulators try to cool the city’s surging property market.

“We won’t be cutting prices,” said Mr Lee. “Maybe we’ll make more money when we sell these apartments again.” Henderson said it was confident in selling them because of the “prestigious” location.

Source : Today – 17 Jun 2010

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