The former government department site in Causeway Bay will be converted for commercial use.
Leading today’s Hong Kong real estate news, last quarter offered no relief to the city’s home buyers as new flat prices surged to the second-highest level since a local agency began keeping records in 1996. Also in the headlines, a former government office in Causeway Bay is poised for conversion into a commercial site worth at least HK$20 billion, and a floor in a Wan Chai office tower changed hands for HK$170 million. All these stories and more await you, if you just keep reading.
New Home Prices Jump 18% in Q1, Averaging HK$16M
The prices of new homes in Hong Kong rose by 18 percent quarter-on-quarter to an average of HK$16.08 million ($2.05 million) each in the quarter ending in March. And market watchers said they expect prices to rise further.
In the fourth quarter of 2017, the average unit price was HK$13.6 million, according to data provided by Ricacorp Properties. “It is the second-highest quarterly figure in terms of unit prices since our records began in 1996,” said Derek Chan, head of research at Ricacorp. Read more>>
HK$20B Commercial Site Planned in Causeway Bay
The government plans to convert the former Electrical and Mechanical Services Department headquarters on Caroline Hill Road in Causeway Bay, together with the adjacent recreational areas, to commercial and governmental uses. The commercial part can provide a floor area of 1.1 million square feet, with a valuation over HK$20 billion.
The former department headquarters has been vacant since 2015. The Development Bureau plans to commence the conversion in the second quarter of this year. Read more>>
Hong Kong’s Toy King Sells Office Floor in Wanchai for HK$170M
Simon Cheng, chairman of toy manufacturer Toy State International, sold a mid-level floor of The Sun’s Group Centre in Wanchai for about HK$170 million, or HK$23,000 per square foot.
Cheng bought the 7,388 square foot floor at the end of 2007 for HK$69.8 million. The manufacturer turned investor earned a cash return of over HK$100 million over 11 years, an increase of more than 140 percent over the original purchase price. Read more>>
Commercial Floors in Sham Shui Po on Market for HK$240M
The retail podium section of the Vista building at 188 Fuk Wah Street in Sham Shui Po, Kowloon, has been put on the market together with seven commercial car parks for a total asking price of HK$240 million, according to an announcement by Savills, which is the the sales agent for the property
The owners of the property in west Kowloon may be hoping to benefit from a surge in interest in the rapidly gentrifying area. Sham Shui Po lies just east of Cheung Sha Wan, which has become a target of some of the city’s largest developers over the last year, and the Vista building is located on the same street as China Vanke’s 32-storey NKIL6534 project, which is expected to add 500 new homes to the area, once it is completed. Read more>>
International Schools Hungry for Expansion Space
Demand for privately owned international schools is expanding fast in Hong Kong, leading more developers and investors to view the education sector as an growing alternative source of income.
John Mortensen, regional director for health care and education services at JLL, now believes there are as many 15 education providers looking for space to expand their operations or set up new campuses in the city. Read more>>
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