Leading today’s Hong Kong real estate news, an office unit Kwun Tong has changed hands for around HK$11,200 per square foot as investors continue to seek cost-effective deals amid the city’s economic downturn. Also in the headlines, a “haunted” flat in Lai Chi Kok was sold for 30 percent below the market price as buyers hunt for bargains.
Also in the headlines, a new report shows that sales of retail properties reached their lowest level ever during the first quarter and new figures from the city government show developers reducing openings of new office projects this year. Read on for all these stories and more
An office property in Kowloon East has sold for HK$22.52 million, according to Land Registry records, with the owners of the company that makes iPhone screens appearing to be the new owners. A buyer registered as Fu Tai Engineering Co Ltd, which lists as its directors, Yeung Kin-man and Lam Wai Ying, purchased an 2,011 square foot (187 square metre) unit in the Legend Tower at 7 Shing Yip Street for approximately HK$11,200 per square foot, according to official records.
The company’s directors share the same names as the founder of Shenzhen display maker, Biel Crystal Manufactory, and his wife, with the company also having acquired block 2 of the Yip Fat workshop at 75 Hoi Yuen Road in Kwun Tong in 2017. The seller had originally acquired the office unit for HK$11.47 million in 2011, indicating a HK$11.06 million capital gain and a mark up of 96 percent in nine years. Read More>>
A 460 square foot flat in Lai Chi Kok has changed hands for HK$5.63 million, according to media reports, with the unit selling for the equivalent of HK$12,239 per square feet or around 30 percent less than the market rate.
The seller had originally purchased the apartment in Liberte in New Kowloon for HK$2.5 million in 2009 after the previous resident committed suicide in 2008. Read More>>
Hong Kong recorded just 605 sales of retail shops during the first quarter, as transaction volume plummeted by nearly 90 percent to hit its lowest level since 2013, according to a report by property agency Centaline.
In one of the landmark transactions of the last month, the founder of footwear and accessories retailer Le Saunda sold a 5,314 square foot (494 square metre) unit in the Le Diamant building in Mong Kok for HK$52 million at nearly half off the purchase price, after buying the Nathan Road property for H$95 million in August 2013, according to Land Registry records. Read More>>
Completions of new office space in Hong Kong are projected to drop to 78,000 square metres this year, according to a report issued this week by the city’s Ratings and Valuation Department.
The expected new supply of offices would mark a more than 80 percent reduction compared to the 267,000 square metres brought to market in 2019 — when the city’s developers had opened the doors to the largest amount of space since 2008.
Of the new supply, grade A space is expected to account for 62 percent of the total, which most of the new space being completed in the New Territories. Read More>>