Kowloon Commercial Building Close to HK$2.5B Sale and More Hong Kong Real Estate Headlines

Leading today’s Hong Kong real estate news, a commercial building in Jordan, one station north of Tsim Sha Tsui, is said to be close to be disposed of for HK$2.5 billion as investor interest in Kowloon commercial properties continues to build. Also in the headlines, Payson Cha’s Hanison sold a set of 19 industrial units in its industrial building in Shatin for a total of HK$158 million. Some 20 units remain to be sold, with price tags likely to climb at the New Territories property. While industrial enthusiam climbs, interest in shopping spaces seems to be sliding as a retail floor in Causeway Bay’s Russell Street has sold at a price 30 percent lower than it was bought four years ago. All these stories and more await you, if you just keep reading.

Jordan Fourseas Building Said Selling For HK$2.5B

The Fourseas Building in Jordan is reportedly close to being sold for HK$2.5 billion, or HK$33,000 per square foot. The 1979 vintage commercial property is on top of the Jordan MTR station and has a site area of 5,073 square feet.

Currently, the basement through the second floors of the 74,267 square foot building are used for retail space, while the rest of the space is reserved for office use. The property now generates monthly rent of around HK$3 million. Read more>>

Hanison Construction Sells 19 Units in Shatin Building For HK$158M

Hanison Construction has sold 19 industrial units in the Shatin Loft industrial building in the New Territories for over HK$158 million. The buyer is paying an equivalent of HK$5,600 per square foot for the assets.

The fourth and fifth floors of Shatin Loft has some 60 units in total and around 20 are still available for sale after this latest batch of transactions. For the remaining units, the owner does not rule out the possibility of a price rise. Read more>>

Russell Street Retail Floor Sold for HK$147M, Down 30% Since 2014

The 29th floor in 8 Russell Street in Causeway Bay was sold for HK$147 million, almost 30 percent lower than the HK$208 million that a mainland investor paid to purchase the upper floor shop space in 2014. The 2014 transaction valued the space in Hong Kong’s busiest shopping street at HK$44,000 per square foot.

The 4,718 square foot property is for retail use, and is currently leased for HK$250,000 per month, which should provide the new owner of the property with a rental yield of around 2 percent.  Read more>>

Mainland Tycoon Abandons IFC Office as Canal Scheme Struggles

Former billionaire Wang Jing, who agreed to build a canal across Nicaragua to rival the Panama Canal, has abandoned his office in Hong Kong island’s tallest skyscraper.

HK Nicaragua Canal Development Investment Co., a subsidiary of a company owned by Wang, surrendered its lease agreement on April 18 for suites on the International Finance Centre’s 18th floor. The company had renewed a three-year lease for the offices in January 2016, with the option to extend for a further three years, according to Hong Kong’s land registry. The lease agreement was initially for HK$2.1 million. Read more>>

Hong Kong Will Never See Low Property Prices, Says Ronnie Chan

Low property prices will never be a reality in Hong Kong, where land is scarce, Hang Lung Properties chairman, Ronnie Chan Chi-chung, said. But he also hopes the prices of micro flats will not rise further.

Chan said Hang Lung has benefited from rising domestic demand in the mainland with luxury sales bouncing back at its shopping malls. Read more>>

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