8 Observatory Road in Tsim Sha Tsui is valued at HK$3.9 billion
Leading today’s Hong Kong real estate news, a 19-storey Ginza-style commercial building owned by Henderson Land and Lai Sun Group is reportedly nearing a sale to an unidentified buyer for HK$3.9 billion. Also in the headlines, Tuesday’s record-breaking Kai Tak site sale may be a sign that developers are undeterred by the prospect of a rising prime rate, which is expected to dampen demand for homes in the city. Elsewhere in Hong Kong, the son of “shop king” Tang Shing-bor is developing a high-end senior living project in Kowloon City which will charge HK$50,000 a month for an apartment. All these stories and more await you, if you just keep reading.
Henderson JV Said Close to Selling TST Building For HK$3.9B
A commercial building in Tsim Sha Tsui developed by Henderson Land Group and Lai Sun Group is reportedly close to being sold for HK$3.9 billion to an undisclosed buyer. 8 Observatory Road is a 50:50 joint venture redevelopment project between the blue-chip developer Henderson Land Group and Lai Sun Group.
The complex built in 2016 was marketed that year with an asking price of HK$4 billion, without any deals being made. The 19-storey building comprises retail floors and office space. The reported transaction price of HK$3.9 billion works out to be HK$21,000 per square foot for the 183,000 square foot (17,001 square metre) property. Read more>>
Developers Shrug off Expected Rate Hikes
Sun Hung Kai Properties Ltd’s record HK$25.2 billion ($3.2 billion) purchase of a coveted plot near Hong Kong’s former airport signals that the city’s developers are brushing off concern that expected rate increases will damp the red-hot housing market.
Hong Kong developers are bracing for the first increase in the city’s prime rate in more than a decade as US rate increases and declining liquidity on the back of a weaker Hong Kong dollar add pressure on key banks to boost the 5 percent rate, a cap for mortgages. The higher land prices signal that developers are confident demand will hold up in what’s already the world’s least affordable real estate market. Read more>>
Stan Group to Launch Senior Homes in Kowloon City Next Month
A senior wellness hub will open in Kowloon City in June, targeting active senior residents. The room rates start from HK$26,700 a month for a 350 square foot care home while the largest 1,000 square foot three-bedroom care home will cost at least HK$50,000 a month.
The project is managed by Stan Group, and its hospitality operator is Tang’s Living Group, as well as local elderly operator Pine Care Group. Situated at 18 Junction Road, near St Teresa Hospital, the Patina Wellness will offer a wide range of health and lifestyle services, said chairman of Stan Group Stan Tang Yiu-sing, adding it will also bring professional elderly care and community-style living. Read more>>
Wheelock to Offer 50 Kai Tak Units for Pre-Sale
Wheelock Properties is to put 50 apartments in its Oasis Kai Tak project in Kowloon East up for pre-sale on Friday, and expects the latest batch could yield a total of HK$830 million. One of the apartments — a 1,470 square foot home with a 458 square foot rooftop deck — may be sold by tender, according to managing director of the group Ricky Wong Kwong-yiu.
As many as 460 of the 648 units at Oasis Kai Tak have so far been sold, for a total of HK$5 billion. The project is expected to be completed by May next year. Read more>>
High Living Costs Weigh on Proptech Development
In Hong Kong, some companies working in property have begun adopting proptech, but by and large, the industry and regulators have been slow in tapping into these advances, which analysts attribute to a few factors.
Hong Kong’s high living costs and history as a traditional financial centre have held back innovation and tech development, according to JLL. Also, regulators are swamped with daily tasks, and would require a special task force to lead the initiative, says chairman of the land surveying division at the Hong Kong Institute of Surveyors (HKIS) Conrad Tang. Read more>>
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