Full Breakdown
Edwin Leong Sells Luxury Flat Amid Weak Rental Market
2/27/2026, 10:39:35 PM
Core Event: Property Sale by Edwin Leong
Edwin Leong Siu-hung, known as Hong Kong's "king of shops" and chairman of Tai Hung Fai Enterprise Group, has sold a luxury flat in the prestigious Mount Nicholson enclave on The Peak for HK$323 million (approximately US$41.3 million). This decision comes as a response to the challenging rental market, which has rendered the property less viable for investment.
Details of the Transaction
The 4,566 square foot, four-bedroom flat was sold at a price of about HK$70,740 per square foot, reflecting a 3.5% increase over the purchase price of approximately HK$312 million in 2016. However, after accounting for stamp duty and transaction expenses, Leong may have incurred a loss on the sale. In a phone interview, Leong explained that the property had been rented out but became vacant after the tenant moved out. He noted, “It’s better to sell as it’s difficult to find tenants now,” highlighting the low rental yield of just 1 to 2 percent.
Buyer Profile
The flat was acquired by Earthstone, a company led by Fu Songyang, a mainland entrepreneur and founder of the luxury car dealership FFF-Automobile based in Beijing. This acquisition reflects ongoing interest from mainland investors in Hong Kong's high-end real estate market, despite the current rental challenges.
Criticism & Opposition
While Leong's decision to sell may seem pragmatic given the current market conditions, some critics argue that the sale underscores a broader trend of declining rental yields in Hong Kong's luxury property sector. This trend raises concerns about the long-term viability of high-end real estate investments in the region.
Official Statements & Responses
In his remarks, Leong emphasized the difficulties in finding tenants in the current market climate, which influenced his decision to sell the property. His comments reflect a sentiment shared by many property owners facing similar challenges in Hong Kong's competitive real estate landscape.
What's Next
The sale of Leong's property may signal a shift in investment strategies among high-net-worth individuals in Hong Kong, as they reassess the profitability of luxury real estate amidst changing market dynamics. Observers will be watching for further trends in property sales and rental yields in the coming months.
