39 Conduit Road
| Company type | Residential property development |
|---|---|
| Industry | Real estate |
| Founded | 2009 |
| Founder | Henderson Land Development |
| Headquarters | Hong Kong , Hong Kong |
Area served | Hong Kong |
| Products | Residential apartments |
| Parent | Henderson Land Development |
39 Conduit Road is an upscale residential development situated on Conduit Road in the western Mid-Levels area of Hong Kong, constructed by Henderson Land Development.
Soon after its market debut in October 2009, the developer publicized the sale of a five-bedroom duplex located on the so-called "68th floor" of the 46-story building for HK$439 million (US$57 million), setting a global benchmark at US$9,200 per square foot.
The development attracted criticism over misleading advertising tactics, as the developer excluded 42 intermediate floor numbers from the count. Further controversy emerged when only one transaction completed within the typical three-month settlement period, and all but four deals—including the record-breaking sale—were subsequently annulled.
Plot history
Prior to Henderson’s redevelopment, 39 Conduit Road was known as "Rocky Mount," an eleven-storey structure finished in 1965 comprising 44 units primarily occupied by civil servants. Henderson chairman Lee Shau-kee began purchasing units during the 1990s, intensifying acquisitions around 2001. Initial purchases were made at HK$4 million per unit, later increasing to HK$8–9 million. Eventually, he controlled 41 out of 44 units. Henderson pursued a compulsory acquisition for the remaining three units but ultimately secured them through negotiations with Peterson Holdings Co Ltd at an average price of HK$12 million each. Lee, who initially held a 60% stake, sold the entire site to Henderson Land for HK$1.75 billion (US$225 million), equating to HK$12,759 per square foot.
Configuration
The development features a single tower rising 45 floors above ground level, including a six-level podium car park, a one-floor clubhouse, and 39 residential stories. The total gross floor area approximates . It comprises 66 residential apartments ranging from to approximately , alongside 104 parking spaces.
Selling strategy
In 2009, Henderson announced intentions to market around 40% of the residences. Two duplex units on the "66th floor" were listed: a unit priced at HK$357.7 million and another unit at HK$311.4 million. The developer also indicated potential pricing of HK$100,000 per square foot for two penthouses on the "88th floor," which were initially withheld from sale.
World record price
One of the duplex apartments on the "68th floor," the larger of two units there, includes amenities such as a ballroom, outdoor swimming pool, fitness centre, and patio. It commanded a headline price of HK$71,280 per square foot based on usable living space incorporating a garden and shared communal areas. Using standard international metrics, this equates to roughly HK$88,000 (US$11,350) per square foot. The purchaser was an anonymous mainland Chinese buyer acquiring through a local company. Another unit on the same level sold for HK$397 million at HK$64,605 per square foot. Allegations of price manipulation arose after it became known that all 24 flats sold by Henderson Land Development were bought by companies registered in the British Virgin Islands and represented by the same legal firm.
In March 2015, a unit changed hands for HK$433 million at HK$93,000 per square foot, exceeding the previous Asian record set by Swire Properties’ Opus Hong Kong in 2012 at HK$82,000 per square foot. Although an earlier transaction in 2009 involved a higher nominal sum of HK$439 million, lower stamp duty rates then resulted in a reduced effective price per square foot. The confirmed buyer was a non-Hong Kong resident subject to a 23.5% stamp duty amounting to over HK$100 million in taxes.
This property is recognized by the World Records Academy as Asia's priciest residence; the former global record was held by a London flat at One Hyde Park sold for US$9,585 per square foot. The prior Asian benchmark was set by a penthouse at The Arch sold by Sun Hung Kai Properties in 2008 for HK$41,100 per square foot. These record-setting prices prompted concerns about a real estate bubble and calls for government measures to increase land supply. Industry analysts responded by emphasizing that such ultra-luxury developments are not indicative of trends within the broader housing market.
The chairman of Hang Lung Properties expressed doubts regarding these valuations; however, Henderson’s chairman affirmed their legitimacy. It was revealed that the purchaser of the record-setting flat acquired six units overall, with reports suggesting that all 24 apartments were bought by one individual using British Virgin Islands-registered shell companies facilitated by identical legal counsel. Market observers questioned potential overpricing—the average price stood near HK$40,000 per square foot, approximately 50% above comparable nearby properties. Rental yields were low at about 2%, compared to a market average closer to 5%. In May 2010, Lee Shau-kee disclosed that his son contemplated but ultimately declined buying a penthouse here due to its steep cost after paying HK$1.82 billion for Peak land intended as their family home.
A four-bedroom duplex featuring a rooftop terrace on the 46th floor sold in December 2015 for HK$595 million (US$76.2 million), or HK$103,700 per square foot (US$143,000 per square meter), establishing it as Asia's most expensive apartment transaction to date.
Developer influence and disputes over misleading marketing
Given the cultural importance of numbers in Chinese culture, developers implemented a numbering scheme considered "auspicious," designating the highest floor as "88" to represent double prosperity. In Hong Kong, it is a common practice to omit certain floors containing the digit 4; however, the Buildings Department only mandates that floor numbers follow a logical sequence. At 39 Conduit Road, 42 intermediate levels are excluded, including floors 14, 24, 34, 64, and all floors from 40 through 59; notably, floor 68 is immediately succeeded by floor 88. The Democratic Party condemned this approach as deceptive, with chairman Albert Ho asserting it demonstrates the extensive power held by major property developers in Hong Kong. The Consumer Council acknowledged that omitting floors such as 13 and 14 is customary but advocated for enhanced transparency to prevent the creation of "illusory heights." Henderson Land Development responded that the omitted floors were clearly disclosed in sales materials and complied with approved architectural plans; chairman Lee Shau-kee emphasized buyers’ preference for these numbers and rejected any accusations of misleading practices.
The New York Times drew attention to ongoing disputes in Hong Kong concerning developers exaggerating apartment sizes and property values by incorporating terraces, communal spaces, and additional features. An editorial in Ming Pao criticized the government’s leniency toward developers, highlighting widespread public suspicion of collusion between authorities and business interests due to inadequate consumer safeguards.
Controversy over delayed handovers
By March 2010, Land Registry data revealed that only one out of the 24 flats sold at 39 Conduit Road had been handed over, sparking concerns about potential misinformation from the developer. An editorial in the SCMP called for improved transparency in property transactions, citing unusual sales patterns that suggested possible market manipulation. Henderson Land informed the Lands Department that verbal agreements with buyers allowed for transaction extensions ranging from two to four months; nonetheless, the Legislative Council's Finance Committee found this explanation insufficient and demanded that senior executives clarify the reasons behind a five-month delay in finalizing sales.
Upon further investigation, Henderson attributed the granted extensions to a notice issued by the Hong Kong Monetary Authority in October 2009 restricting bank loans for luxury housing purchases. Despite this, the Lands Department remained dissatisfied due to the absence of formal documentation regarding these postponements.
On 15 June 2010, Henderson announced it would cancel all but four of the 24 flats sold at record prices in October, provoking public backlash. The company described such cancellations as routine industry practice and noted that buyers forfeited their initial deposits. The affected units were slated for resale. In response to public concern, the government committed to monitoring these transactions closely amid calls for stricter regulations and greater openness in property sale procedures, as current oversight relies on a voluntary code established by the Property Developers' Association.
Only four apartments—located on the 30th and 31st floors—were completed and sold at prices ranging from HK$37,800 to HK$40,900 per square foot, less than half of their previously recorded peak values. The cancelled transactions involved BVI shell companies, raising suspicions about potential sham deals; however, Henderson’s chairman Lee firmly defended their legitimacy and offered a wager of 100:1 against any evidence proving otherwise. The Hong Kong Institute of Surveyors condemned these cancellations as detrimental to Henderson's reputation. Lawmakers from various political backgrounds called for investigations and stronger measures to prevent market abuses.
In July 2010, officers from the Commercial Crime Bureau conducted raids on Henderson’s offices as well as those of their legal counsel, confiscating documents related to the 20 cancelled transactions. By February 2011, authorities had identified four buyers involved in these deals and interrogated three individuals; no arrests were made. Mainland Chinese media reported that one buyer was Ding Yuxin (Ding Shumiao), who was connected to corruption investigations involving Railways Minister Liu Zhijun and had been detained by mainland officials in January 2011.