Table of Contents
1. The “Land Title Code” of Hong Kong’s Peak Area
There is a saying in the real estate industry in Hong Kong: "The boss lives in Mid-Levels, and the dynasty is hidden in the Peak." Barker Road, located on the Peak in Hong Kong Island, has been the "No. 1 luxury residential area in Asia" where the rich and powerful gather since the founding of Hong Kong. This private road is only 1.7 kilometers long, and the 22 mansions along it are owned by multinational tycoons, hidden families, and political and business leaders. Changes in their land ownership often affect the nerves of the capital market.
According to data from the Rating and Valuation Department in 2023, the average price per square foot of the Barker Road site reached HK$380,000, ranking first in the global luxury home price list for twelve consecutive years. Real estate transactions here have three special features: first, more than 80% of the properties are held by offshore companies, forming a unique "shell company transaction ecosystem"; second, the expansion of land plots requires a complex "official land approval procedure"; third, most transactions are "dark transactions", and the actual transaction price is often 30%-50% higher than the registered record.
II. Institutional Perspective of the “Subsidy for Additional Approval” Mechanism
The core of the expansion project of Jack Ma's residence, which has attracted much attention this time, lies in the "surrender and regrant" procedure approved by the Lands Department in accordance with Section 6 of the Government Land Rights (Re-entry and Vesting Remedies) Ordinance. This mechanism allows owners to incorporate adjacent government land into their original land after paying the market value of the land. According to Legislative Council documents, a total of 127 additional approval applications were processed in Hong Kong between 2000 and 2022, with an average approval period of 26 months.
| Flower Name | Real name | Current position/background | Time to obtain Hong Kong identity | Known Hong Kong Properties (Land Registry Records) |
|---|---|---|---|---|
| Feng Qingyang | Jack Ma | Alibaba Group Permanent Partner | 2008 | Villa 22, Barker Road, The Peak (purchased for HK$1.5 billion in 2015, under reconstruction) |
| Xiaoyaozi | Zhang Yong | Chairman of Alibaba Cloud | 2016 | Luxury house on Shoushan Village Road, South District (purchased for about 600 million in 2020) |
| East Evil | Joseph Tsai | Chairman of the Board of Directors, Alibaba Group | 1999 (Canadian) | Repulse Bay Road sea view luxury house (purchased for about 800 million in 2019) |
| Walking | Zhang Jianfeng | CEO of Alibaba Cloud Intelligence Group | 2015 | High-rise unit at the Arc de Triomphe, Kowloon Station (purchased for HK$120 million in 2018) |
| Sun Quan | Hu Xiaoming | Former CEO of Ant Group | 2014 | Mid-level unit at The Ultima in Ho Man Tin (purchased for $78 million in 2017) |
| Su Quan | Peng Lei | Former Chairman of Ant Group | 2013 | High floor of Royal View Garden in Mid-Levels Central (purchased for HK$150 million in 2016) |
| Guo Jing | Jing Xiandong | Chairman of Ant Group | 2015 | The Leighton Hill unit in Happy Valley (purchased for $95 million in 2021) |
| Miejue Nun Tai | Dai Shan | CEO of Taotian Group | 2012 | High-rise building in Mid-Levels West (purchased for $68 million in 2019) |
| Mitutoyo | Wang Jian | Academician of the Chinese Academy of Engineering/Founder of Alibaba Cloud | 2017 | Lohas Park, Tseung Kwan O (purchased for $32 million in 2020) |
| Penglai Immortal | Sheng Yifei | Non-Executive Director of Ali Health | 2015 | 68 Deep Water Bay Road (purchased in 2022 for $210 million in cash) |
| Lu Su | Fan Luyuan | Chairman of Alibaba Pictures | 2014 | North Point Seaview Unit (purchased for HK$110 million in 2021) |
| Yuyan | Tong Wenhong | Former CPO of Alibaba Group | 2013 | Red Hill Peninsula Villa in Tai Tam (purchased for 180 million in 2018) |
The particularity of this case lies in three aspects: first, the additional land parcel was originally used for public access, and any change in the nature of the land requires special permission from the Town Planning Board; second, the land premium of HK$11.72 million is only HK$421,000 of the market valuation, which has raised questions about "privileged transactions"; third, it only took 14 months from application to registration, which is 461,000 months shorter than the average procedure. Land officials revealed that such cases usually require a "non-public value assessment" and the final price often depends on the applicant's negotiation ability.
3. The mystery of the property rights and the architectural blueprint of Jack Ma’s mansion
The property rights structure of the property involved, No. 22 Barker Road, can be described as an "offshore financial textbook": the current holding company ALATINI GROUP LIMITED is registered in the British Virgin Islands, and its sole director is the designated agent of the Jack Ma family trust. This cleverly echoes the structural design when the property was purchased in 2015 - the transaction was completed that year through the acquisition of Worldwide Union International Limited, an offshore company holding the property, successfully circumventing the 30% buyer's stamp duty and saving tax costs of more than HK$450 million.
The building permit for the property reveals its positioning as a "super luxury home": the rebuilt five-story mansion will be equipped with an 18-meter infinity pool, an underground wine cellar and reserved space for the transformation of a helicopter pad. It is worth noting that the "landscape protection clause" is specifically marked in the building drawings, requiring that all windows must use one-way coated glass to ensure that the interior of the mansion cannot be seen from the Central Financial District. This design is the first of its kind in the private housing sector in Hong Kong.
4. Capital Undercurrents Behind Super Luxury Homes
It is worth noting that Jack Ma’s expansion this time coincides with a critical period in the reorganization of his business empire. Since 2022, Jack Ma's family trust has raised more than US$5 billion through equity pledge, offshore bond issuance and other means, mainly investing in Southeast Asian e-commerce and Hong Kong real estate projects. JLL analysis shows that Hong Kong's super luxury homes are becoming an "asset safe haven" for mainland wealthy people - compared with mainland real estate, Hong Kong properties have advantages such as foreign exchange freedom, judicial independence and flexible estate planning.
However, this capital flow is changing the ecology of Hong Kong's luxury housing market. A Savills report pointed out that 78% of transactions in the Peak District in 2023 involved "cross-holdings of shell companies", an increase of 41 percentage points from 2015. Complex offshore structures not only increase the difficulty of supervision, but also give rise to the risk of "ownership vacuum" - some actual controllers of properties hide their identities through multiple layers of trusts, and once property rights disputes occur, they will face the problem of cross-border judicial jurisdiction.
Conclusion: Institutional balance in the capital gravity field
The expansion project of Jack Ma’s residence is like a prism, reflecting Hong Kong’s difficult balance between capital globalization and the maintenance of public interests. As the walls of the super-rich’s mansions continue to extend, how to prevent the continued fragmentation of public space will test the SAR government’s art of governance. This is not only a technical adjustment to the land system, but also an important decision concerning Hong Kong's core values.
Jack Ma(September 10, 1964 -), ancestral homeZhejiangShengzhou, born in ZhejiangHangzhou,Chinese mainlandentrepreneur,Chinese Communist PartyParty member. Once the richest man in Asia,Alibaba GroupChairman of the Board(Chairman),Taobao,AlipayFounder ofThe Nature ConservancyHonorary Chairman of the Greater China Council,Huayi Brothersdirector. Currently serving asThe University of Hong KongHonorary Professor of the School of Business and Management, with the academic field of "Management and Business Strategy" andUniversity of TokyoResearch institution: Tokyo Institute of TechnologyVisiting Professor, whose research direction is "Sustainable Agriculture and Food Production".
[Extended Reading]
‧ Alibaba founder Jack Ma may spend HK$1.5 billion to buy a super luxury house in Hong Kong, setting two new records in the global real estate market
