Two planned property purchases in Hong Kong by the Grosvenor Group have fallen through as the sellers pulled out of the deal.
"We have bid on quite a few deals in the last several months but not concluded any of them for a variety of reasons," says Nicholas Loup, chief executive officer of Grosvenor's Asia-Pacific division. "Most often, the sellers changed their minds or even raised the price during the documentation stage. At this point in the cycle, it is important to have a clear view of what you are prepared to pay."
Hong Kong currently has the world's most expensive real estate, thanks largely to an undersupply of homes, low mortgage rates and an influx of Chinese buyers in the last two years. During this time, property prices surged 65%, prompting the government to enforce cooling measures to stave off an asset bubble. Home sales still rose by 30% in February from the month before, with sales amounting to HK$45.6 billion (US$5.9 billion) -- 37% higher than sales in January and 12% than sales in February 2010.
Grosvenor, the real estate firm owned by the Duke of Westminster, develops luxury residential properties in Hong Kong, such as Grosvenor Place Repulse Bay and The Westminster Terrace in Tsuen Wan.