Hong Kong Luxury Home Sellers Accept Deeper Price Cuts as Market Cools

Property agents in Hong Kong report growing price flexibility among luxury home sellers, with roughly a third of owners in the Peak and Southern district open to reducing their asking prices by about 10%. The trend comes as the secondary luxury residential market shows signs of a sustained slowdown.

Joseph Yan, senior principal district sales director at Centaline Property, said 30% of owners listing luxury homes in those areas had indicated a willingness to negotiate. "I believe there is likely still room for further price negotiation," he added.

Recent celebrity transactions illustrate the pressure. Actor Stephen Fung Tak-lun sold a mid-level unit at 63 Pok Fu Lam in March for HK$7.05 million, after progressively cutting the price from an initial HK$8.7 million—a cumulative reduction of 19%. The sale incurred a paper loss of HK$1.35 million, or about 16%, after six years of ownership.

Singer William Chan Wai-ting also sold a terrace unit at The Pavilia Hill in North Point in May for HK$26.28 million, a 23% discount from the HK$34 million asking price when it was listed in 2022. That transaction resulted in a paper loss of HK$233,000 after an 11-year holding period.

Agents said secondary luxury home trading is likely to remain slow in the short term, with prices under pressure as more sellers adjust to buyer expectations.