The Water Supplies Department Hong Kong Regional Building will be turned into a HK$11.6 billion commercial site
Leading today’s Hong Kong real estate news, S&P Global Ratings has some ideas as to why mainland developers have suddenly stopped splurging on land in the city. Also in the headlines, a property brokerage says flexible office operators will lease out 1.2 million square feet of space by the middle of this year — up from 340,000 square feet in all of 2017. All these stories and more await you, if you just keep reading
Mainland Developers Pull Back on HK Acquisition Spree
Concerns about Hong Kong developers losing market share to their Chinese peers are fading as mainland companies have pulled back from their breakneck expansion in the city, according to a report from S&P Global Ratings.
“Mainland developers took up nearly half of the land tenders during the financial years of 2015 and 2016, but their share has dropped to only 11 percent in the current financial year,” because of the effects of Chinese capital controls and tighter scrutiny on overseas investments, said Esther Liu, who led the research on the latest report released by the ratings agency on Monday. Read more>>
CBRE Forecasts 1.2M SF of Flexible Office Take-up by Mid-2018
Hong Kong’s office market recorded a net absorption of 1.2 million square feet (111,483 square metres) in 2017, an increase of more than two-fold from the previous year, CBRE said. One of the drivers for increased net absorption was the expanding number occupiers moving into co-working, the report found.
Co-working space took up 340,000 square feet of office space in the city last year, up by more than 100 percent from the year before. CBRE expects co-working space operators will lease a combined 1.2 million square feet of office space by mid-2018. Read more>>
HK$11.6B Government Site in North Point Available in Six Years
The government plans to convert the existing Water Supplies Department Hong Kong Regional Building on 611 King’s Road in North Point to commercial use. The water supplies department will move out of the site in six years at the earliest.
The site will provide 760,000 square feet of GFA and is valued at HK$11.6 billion ($1.5 billion). The plot has already been designated for commercial use. It is a rare large-scale commercial site in the east of Hong Kong Island. Read more>>
Chuang’s Consortium Asks HK$600M for Sham Shui Po Building
Chuang’s Consortium International has put the Posco Building at 165 Un Chau Street in Sham Shui Po on the market with the hope of bringing in nearly double what it paid for the northwestern Kowloon asset last year. The ground floor of the 13-storey building is a retail space, while the rest of the floors are for office and industrial uses.
The 47,258 square feet building is valued at HK$600 million ($77 million). Chuang’s bought the property last year for around HK$300 million ($38 million), and the sale is being brokered by Colliers International and AG Wilkinson. Read more>>
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