Carlson Tong, Chairman of Hong Kong Stock Exchange Operator HKEX, Sells Luxurious Residence for $9 Million

Carlson Tong, chairman of Hong Kong Exchanges and Clearing, has divested a luxurious residence in the Pok Fu Lam district for HK$70 million (US$8.9 million), over threefold the acquisition cost.

HKEX’s chairman Carlson Tong. Image: HKEX

Tong first purchased the four-bedroom unit, including 3,114 square feet (289 square meters), at the Villa Cecil complex for HK$23.2 million in 2000, as per Land Registry data referenced by the South China Morning Post.

The Hong Kong real estate market has historically been a preferred investment for Chinese entrepreneurs and celebrities; nevertheless, the recent downturn has adversely affected property values.

Home prices have declined roughly 30% from their 2021 zenith, influenced by escalating mortgage rates, diminished demand following the exodus of several professionals from urban areas, and a lackluster economic outlook, as reported by Reuters.

HKEX’s chairman Carlson Tong. Image: HKEX

Real estate professionals report that prices for luxury properties have declined by up to 45% from their peak, encouraging affluent purchasers to capitalize on the situation.

Shirley Peng, sister of former Hong Kong Chief Executive Tung Chee-hwa, allegedly purchased a flat in the affluent Mid-Levels district for HK$119 million (US$15.2 million) at an 8.5% discount late last month.

Pop icon Gloria Tang, recognized as G.E.M. or "China’s Taylor Swift," capitalized on the market decline by acquiring two Wan Chai apartments earlier this year for HK$85 million, or 35% below their peak valuation three years prior.

Despite the increasing activity in luxury property transactions, prices have remained depressed owing to the substantial availability of distressed assets, as indicated by a March study from property consultancy Savills referenced by Bloomberg.

Nevertheless, while buyer interest persists, the opportunity for luxury discounts may be diminishing. Property consultancy Knight Frank anticipates a 3% increase in luxury home prices in the city this year.