“The owner just sold 174 Cedar Redhill for HK$60 million (US$14.24 million). They had an uncompleted renovation with basements that need repairs,” said an agent speaking on condition of anonymity.

The property, with a gross floor area of 3,339 square feet according to the website of Centaline Property Agency, was bought for HK$111.5 million in 2017.

Other agents confirmed the deal and said it has been the talk of the industry.

03:02

Landslide reveals illegal basements under luxury Hong Kong homes

Landslide reveals illegal basements under luxury Hong Kong homes

The luxury estate in Tai Tam has come under the close scrutiny of officials since a black rainstorm hit the city early in September, triggering a landslide in the district that affected three houses and revealed illegal structures at four houses in Redhill Peninsula.

The discovery led to the authorities conducting a wider inspection during which they found that more homes had potentially carried out unauthorised building work on their premises. In all, suspected illegal structures were found in another 70 out of the 85 seaside homes that were checked.

Under Hong Kong law, owners face up to a year in jail and HK$200,000 (US$25,567) in fines for such offences.

Luxury homes, a niche segment accounting for about 2 per cent of the local market, have enjoyed something of a comeback this year, according to data compiled by Knight Frank. The volume shrank by more than 50 per cent in 2022 to the lowest since 2019, according to the consultancy.

However, given the elevated interest rate environment, the high-end property market is likely to be more volatile in the second half of the year, according to Savills.