HONG KONG - A HOUSE at one of Hong Kong's most prestigious addresses has sold for less than half its asking price as property values continue to plunge amid the financial crisis, a report said on Thursday.

The house, near Hong Kong's famous Victoria Peak, sold for HK$76 million (S$14 million), heavily reduced from its original asking price of HK$190 million, Sing Tao Daily reported, citing market sources.

The 3,300-square-foot (307 square-metre) property was sold to cartoonist Ma Wing-shing, the report said.

The owner bought the property in 2006 for US$90 million. The owner agreed to slash the price after the recent crashes in the Hong Kong stock market, which has lost more than 50 per cent in the last year.

The transaction marked the first time a property in the Severn 8 development was sold in the secondary market for less than its original purchase price.

Severn 8, with 22 Italian-style houses, has been dubbed Asia's number 1 luxury development after its per square foot price reached US$56,200 to become the region's highest priced in June this year, the report said.

Properties on the Peak offer a panoramic view of the city's famous Victoria Harbour and are much sought after.

The city's high-end property market has been dealt a severe blow by the credit crunch, with analysts expecting a 30 per cent drop in prices for luxury flat over the next year as banks tighten their mortgage policies.