A floor in Far East Consortium Building was sold for a record-breaking price
Leading today’s Hong Kong real estate news, a locally listed firm bought a floor in Central’s Far East Consortium Building for HK$20,000 ($2,548) per square foot, breaking the building’s record, and helping the former owner to turn a profit of HK$146 million in one year. Also in the headlines, the city’s biggest property agents took in a combined HK$10 billion ($1.3 billion) in fees last year, and the prices for second-hand homes are climbing faster than ever. All these stories and more await you, if you just keep reading.
Newtree Group Buys a Floor in Far East Consortium Building for HK$146M
Hong Kong-listed Newtree Group (1323) bought the 23rd floor of the Far East Consortium Building in Central from investor Tsoi Chi Chung for HK$146 million ($18.6 million), according to an announcement to the stock exchange. The price paid represents an increase of HK$38 million ($4.8 million) since the asset last traded one year ago.
The 7,316 square foot (680 square metre) unit was sold at HK$20,000 per square foot, the highest price ever for the building on Des Voeux Road. The property is currently leased to five tenants. When the leases are expired, Newtree Group will take over the premise as their office in Hong Kong. Read more>>
Centaline And Midland Record Fees of HK$10B Last Year
Hong Kong’s two largest property agents, Centaline and Midland, enjoyed sharp increases in commission revenue generated in the city last year, as sales of new homes and prices surged to record highs.
But market commentators are warning the sector’s outlook remains clouded by uncertainty over rising interest rates, and that the volatile equity market could also dent buying desire. Read more>>
Second Hand Flats See Prices Rise at Fastest Pace in 10 Months
The prices of lived-in homes in Hong Kong soared last month at the fastest pace in 10 months, as buyers rushed to get ahead of an expected increase in mortgage rates, while a shortage of available properties forced buyers to raise their bids in the world’s most expensive real estate market.
An index of secondary market home prices rose 5.8 points, or by 1.6 percent to 364.1 in February, according to data released by the Rating and Valuation Department, faster than the 1.53-percent gain in January. The rental index rebounded by 0.1 percent to 187.5, illustrating an increase in leasing costs, the data showed. Read more>>
Shop in Soho Nightlife Hub Selling For HK$43M
A shop at 18 Elgin Street in Central has been put on the market for HK$42.8 million ($5.5 million) or HK$77,818 ($9,915) per square foot. The 550 square foot shop is currently leased to a Sichuan restaurant for HK$69,000 ($8,792) per month, and the new owner of the property can reportedly earn around a two percent rental yield.
Another 200 square foot shop on the same street was recently sold for HK$20.2 million ($2.6 million), or HK$101,000 ($12,869) per square foot. Read more>>
Tune in again later for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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