Mong Kok Site Sells for 20% Off and More Hong Kong Real Estate Headlines

Leading today’s Hong Kong real estate news, a mixed-use plot in protest-hit Mong Kok has sold at a 16-year low price as real estate values continue to feel the weight of the city’s sliding economy. Also, in the headlines, an investor has sold a Tsuen Wan office unit at a gain of HK$13.88 million ($1.79 million) as buyers continue to seek bargains. 

In the residential sector, the former home of a late local celebrity was sold as part of a residential package that brought in HK$160 million, after the seller reduced the price by HK$100 million. Read on for all these stories and more.

Mong Kok Plot Sells for 20% Below Expectations

A unit of Hong Kong-listed Eagle Legend Asia acquired a residential site in Kowloon’s Mong Kok area on Thursday for nearly 22 percent less than market expectations, according to an announcement by the city’s Lands Department.

The mainland invested firm beat out four competing bidders to purchase the 2,718 square foot (252.5 square metre) plot between Reclamation Street and Shanghai Street, near the intersection with Dundas Street, in Mong Kok for HK$85.9 million ($11 million). The winning bidder is permitted to build up to 24,426 square feet of residential or commercial space on the site, which makes the purchase equivalent to HK$3,512 per square foot of built area. The rate per square foot is the lowest recorded in the protest-marred area since 2004. Read More>>

Tsuen Wan Office Unit Sells for HK$15.88M

An industrial unit has changed hands in Tsuen Wan district of Hong Kong’s New Territories for HK$15.88 million ($2.05 million) or HK$2,657 per square foot, according to local brokerage Flourish Property. The seller had originally acquired the office-style asset in the Golden Bear Industrial Centre at 66 Chai Wan Kok Street for HK$2 million in 2005, indicating a HK$13.88 million capital gain over the 15 year period, according to the property agency. Read More>> 

COLI Unit Sells Home of Local Celebrity in HK$160M Deal

A unit of one of China’s largest developers recently sold a pair of luxury duplex flats at Cambridge Garden in Kowloon Tong for HK$160 million ($20.64 million) after the seller took HK$100 million off the asking price to seal the deal, according to a local media report this week.

China Overseas Land and Development sold the two low-rise units at 1 Lancashire Road, one of which had earlier been the residence of popular comedienne Lydia Shum Din-ha, for a total capital gain of HK$65 million, according to the media account. The unit of China Overseas Land and Investment had purchased Shum’s 4,515 square foot (419.5 square metre) home after her death in 2008 for HK$40.29 million, before acquiring a second unit, measuring 4,568 square feet shortly thereafter for HK$54 million. Read More>> 

Nano Flat Completions Rise 11X in 5 Years

Hong Kongers are feeling the squeeze as construction of nano flats continues to rise in the world’s leading city for housing unaffordability, according to recent government statistics. A total of 982 homes measuring 215 square feet or less were completed in the city during 2019 — up 72 percent compared to the previous year, according to the latest figures from the Transport and Housing Bureau, which show that construction of these shoebox homes has risen 11-fold since 2015.

T-Plus in Tuen Mun, which was jointly developed by Jiayuan International Group and Stan Group, has homes measuring as small as 128 square feet, and prices which start at HK$1.73 million ($223,000). That project accounted for 28 percent of Hong Kong’s supply of shoebox flats in 2019, but has had to slash prices since July last year to attract buyers. Read More>>

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