Hong Kong Developer Bets on Prime Real Estate Despite Market Downturn

Vivien Chan, founder and chairwoman of V Group, is moving forward with plans to sell prime properties in Hong Kong, including serviced apartments in Causeway Bay and luxury houses on The Peak, even as the city's property market experiences a slowdown. This strategic move comes at a time when home prices have seen a significant drop.

Key Takeaways

• V Group is set to offer 64 serviced apartments at The Hayworth by V in Causeway Bay.
• Four luxury houses at 20 Peak Road by V on The Peak will also be put on the market.
• The sales proceed despite a nearly two-and-a-half-year low in Hong Kong home prices.

Prime Properties Up For Grabs

V Group is preparing to list 64 of the 120 fully furnished units at its flagship serviced apartment project, The Hayworth by V, located at 9 Yee Wo Street in Causeway Bay. This development, formerly known as V Causeway Bay, has recently undergone a substantial HK$200 million (US$25.5 million) renovation and is situated near the Causeway Bay MTR station. The units available range from 274 sq ft to 876 sq ft.

In addition to the Causeway Bay offering, the developer plans to sell four super deluxe houses at 20 Peak Road by V, situated in the prestigious The Peak district. This move signals a continued confidence in the high-end property market, despite prevailing economic conditions.

Navigating Market Slowdown

The decision to bring these high-value properties to market comes as Hong Kong's property sector faces headwinds. Home prices in the city declined to their lowest point in approximately two and a half years in July, a trend that began after peaking in September 2021. This downturn is largely attributed to increased borrowing costs, which have dampened buyer demand.

Vivien Chan acknowledged the impact of the prolonged Covid-19 pandemic on the property market but remains undeterred. Her strategy suggests a belief in the enduring appeal of prime Hong Kong real estate, particularly for well-located and renovated properties.

Sources

• Hong Kong developer V Group readies Causeway Bay apartments and luxury houses on The Peak for sale amid
  market slowdown, South China Morning Post.
• Hong Kong developer V Group readies Causeway Bay apartments and luxury houses on The Peak for sale amid
  market slowdown, South China Morning Post.