News Room – Daily Property News

Fifty major Grade A office buildings recorded 33 transactions in 1H
According to market news, 33 transactions were recorded in fifty major Grade A office buildings in 1H 2020, plunged 63% h-o-h. While the deals involved a total floor area of around 146,000 sq ft, decreased by 64% h-o-h. Of which, sales in the Kowloon district accounted for 23 transactions.

No. of mortgage on completed properties up 50% m-o-m in June
Mortgage performance in the residential market rebounded on the ride of the improving pandemic situation. A total of 7,488 cases of mortgage on completed properties were recorded in June, surged 48.8% m-o-m to a half-year high. Over the same period, 442 equitable mortgage registrations were recorded, edged up 9.4 % m-o-m.

Duplex unit of The Masterpiece sold at HKD 138 m
Top-floor duplex unit at The Masterpiece, Tsim Sha Tsui, with a saleable area of 1,974 sq ft, has been sold at HKD 138 million or HKD 69,800 per sq ft. The unit price reached a new high of the estate.

GAP moving out Granville Road shop
American apparel brand GAP moved out its current branch at Albion Plaza, 6-10 Granville Road, Tsim Sha Tsui. The mega shop has a total area of 25,500 sq ft, and it has been rented out at HKD 1.2 million per month or HKD 47 per sq ft since last year. The lease should be ended in two years, while the owner has put the unit back on the market with an asking rent of HKD 1.5 million per month.

(Sources: Vigers Research and market news)

Industrial and commercial transactions down 6% m-o-m in June
According to market news, stripping out the number of internal transactions with a price above HKD 1 billion per transaction, 241 industrial and commercial transactions were recorded in June, edged down 6% m-o-m. The total consideration recorded HKD 5.5 billion on a similar level as May. Yet, both the figures plunged 50% on the yearly basis.

Fanling plot acquired at HKD 188 m
The agricultural land located at 7 On Fuk Street, Fanling was awarded to Grand Ming Group Holdings Limited on 5 June, announced by the Land Registry. It has been sold for HKD 188 million. The site has an area of 20,000 sq ft, with a GFA of 100,000 sq ft. The accommodation value is about HKD 1,880 per sq ft, and a data center complex is planned to be developed on the parcel.

Mantin Heights sold with loss at HKD 47 m
Top-floor unit, Tower 9, Mantin Heights, Ho Man Tin, with a saleable area of 1,468 sq ft, has been changed hands with a rooftop at HKD 47 million or HKD 32,016 per sq ft, 10% below the initial asking price. The original owner bought the unit at HKD 57.231 million in 2016, making a book loss of HKD 10.231 million in four years.

60% rent slash at Granville Road
Street shop B, Wah Fai Mansion, 38-40 Granville Road, Tsim Sha Tsui, with an area of 5,000 sq ft, has been leased to a supermarket for HKD 300,000 per month or HKD 60 per sq ft. The new rent is 59% lower than the previous one, and the level returns to that in 1998.

(Sources: Vigers Research and market news)

Tender for Sha Tin industrial land closes on Friday
The tender for Sha Tin Town Lot No. 613 at the junction of Tsung Tau Ha Road and Kwei Tei Street, Sha Tin will close this Friday. The site has an area of 98,792 sq ft, and the total GFA reached 938,524 sq ft, designated for industrial, godown and ancillary office and related uses. The market valuation is about HKD 3 billion, and the accommodation value is at around HKD 3,200 per sq ft.

250 transactions recorded in ten major estates in June
According to market news, as at 29 June, 250 transactions were recorded in the ten major estates, down 20% m-o-m. Over the second quarter of the year, the figure recorded around 850 transactions, hitting the two-year high with a quarterly increase of 42%.

Shop in Happy Valley transacted at HKD 48.85 m
Shop D, G/F,12-12C Sing Woo Road, Happy Valley, with an area of 750 sq ft, has been sold at HKD 48.85 million or HKD 65,000 per sq ft. The original owner purchased the shop at HKD 38 million in 2010, making a book profit of HKD 10.85 million and a 29% appreciation in ten years.

Ruby Court sold at HKD 36.9 m
According to market news, Unit B, low-floor, Tower 2, Ruby Court, Repulse Bay, with a saleable area of 1,390 sq ft, has been sold at HKD 36.9 million or HKD 26,547 per sq ft. The original owner purchased the unit at HKD 11 million in 2001, making a book profit of HKD 25.9 million and a 2.4 times appreciation.

(Sources: Vigers Research and market news)

531 new homes were sold over weekend
A total of 531 units were sold in the primary market over the past weekend, surged seven times w-o-w (Past weekend: 66 transactions). The figure reached a year high level. Of which, Sea to Sky of Lohas Park, Tseung Kwan O recorded around 456 transactions at the first batch on Saturday, dominating approximately 99% of the units launched.

Ten major estates recorded 15 transactions during weekend
According to market news, 15 transactions were recorded in the ten major estates during weekend, down 16.7% w-o-w. Among which, Kingswood Villas in Tin Shui Wai was the best-selling project with five units sold.

The Capitol changed hands at HKD 9.2 m
Unit B, high-floor, Tower 1, The Capitol, Lohas Park, with a saleable area of 680 sq ft, has been changed hands at HKD 9.2 million or HKD 13,529 per sq ft. The original owner purchased the unit at HKD 5.54 million in 2013, making a book profit of HKD 3.66 million and a 66% appreciation in seven years.

One Eighty rented at HKD 60 psf
Unit C, mid-floor, One Eighty, Shau Kei Wan, with a saleable area of 247 sq ft, has been rented out at HKD 14,800 per month or HKD 60 per sq ft. The owner purchased the unit at HKD 6.268 million in 2019, earning a rental return of 2.8%.

(Sources: Vigers Research and market news)

Le Village reached new highs
According to market news, Unit A, top-floor, Le Village, Happy Valley, with a saleable area of 1,048 sq ft, has been transacted at HKD 29 million or HKD 27,672 per sq ft. The transaction price and unit price reached the highest of the estate. The original owner purchased the unit at HKD 10.9 million, making a book profit of HKD 18.1 million in 11 years.

Victoria’s Secret moving out Causeway Bay shop
Women’s underwear brand Victoria’s Secret suddenly moved out its current shop at Capitol Centre, 5-19 Jardine’s Bazaar, Causeway Bay. The giant shop has a total area of 51,188 sq ft, has been rented out at HKD 7 million per month or HKD 137 per sq ft since September 2017. The lease ending in August 2027, Victoria’s Secret is expected to pay the remaining rent of HKD 630 million.

Entire floor of Manhattan Place rented at HKD 30 psf
According to market news, entire floor of Manhattan Place, Kowloon Bay, with an area of around 20,000 sq ft, has been rented by Warner Music at HKD 30 per sq ft.

Shop at Sai Ying Pun changed hands at HKD 45 m
Street Shop, G/F, 63 Des Voeux Road West, Sai Ying Pun, with an area of 1,055 sq ft, has been sold early this month at HKD 45 million or HKD 42,600 per sq ft, 15% higher than the market price. The original owner bought the shop at HKD 12 million in 1993, making a book profit of HKD 33 million and a 275% appreciation in 27 years.

(Sources: Vigers Research and market news)

Loosen the plot ratio of Cheung Sha Wan industrial building
First Group Holdings Limited has proposed to the Town Planning Board to loosen the plot ratio by 20% to 14.39 at the industrial site located at 1016-1018 Tai Nan West Street, Cheung Sha Wan. It is expected to be redeveloped into a 29-storey (including a three-storey basement) innovative industrial building, and a total GFA of 213,000 sq ft will be provided.

Tender opens for Lohas Park Phase 13 in Q3
Tender for the MTR’s project, Lohas Park Phase 13, Tseung Kwan O is planned to open in Q3 2020. According to market news, the land premium is forecasted at HKD 10.2 billion or the accommodation value of HKD 6,770 per sq ft. With a total GFA of 1.507 million sq ft, the project is expected to provide no more than 2,550 units.

Far East Finance Centre rented at HKD 580,000
Entire office floor, 32/F, Far East Finance Centre, Admiralty, with an area of 10,550 sq ft, has been rented at HKD 580,000 per month or HKD 55 per sq ft. The new rent is 26.7% lower than the previous rent.

Double Cove reached new highs
Duplex unit B, 1/F, Block 2, Double Cove, Ma On Shan, with a saleable area of 3,089 sq ft together with a garden and two parking spaces, has been transacted at HKD 62.98 million or HKD 20,388 per sq ft. Both the transaction price and unit price reached new high among similar units of the estate.

(Sources: Vigers Research and market news)

Vacancy rate of Central Grade A office hit 5% in May
According to market news, the vacancy rate of Grade A office in Central increased to 5% in May, reaching the 12-year high since 2008. Over the same period, the average unit rent of Central Grade A office was HKD 102.4 per sq ft, down 2.7% m-o-m.

Ma On Shan green belt sites planned to convert into housing use
The Planning Department recommended to change the use of the seven green belt plots in Ma On Shan. Among which, four sites are planned to rezone to residential purpose, providing 7,220 public and private residential units in total. The other three sites are suggested to be used for government, institution or community use.

Adjacent Units of Regence Royale changed hands at HKD 215 m
Adjacent Units (Unit A and B), high-floor, Tower 2, Regence Royale, Mid-Levels, with an area of 1,933 sq ft and 1,805 sq ft respectively, have been transacted at HKD 215 million in total. Of which, unit A was sold at HKD 115 million or HKD 59,493 per sq ft.

Shop in Sheung Wan transacted at HKD 21 m
Shops B1B and B2, G/F, 325-329 Queen’s Road Central, Sheung Wan, with an area of 600 sq ft, have been acquired by Bridgeway Prime Shop Fund at HKD 21 million or around HKD 35,000 per sq ft, 30% below the initial asking price. The shop is currently leased to a local restaurant for HKD 45,000 per month, representing a yield of 2.6% to the new buyer.

(Sources: Vigers Research and market news)

66 new homes were sold over weekend
A total of 66 units were sold in the primary market over the past weekend, up 50% w-o-w (Past weekend: 43 transactions). Among which, Unit M, 3/F, The Campton, Cheung Sha Wan, with a saleable area of 265 sq ft, has been sold at HKD 6.002 million or HKD 22,649 per sq ft, hitting the new high of the property.

Ten major estates recorded 18 transactions during weekend
According to market news, 18 transactions were recorded in the ten major estates during weekend, while the number stayed unchanged over the week. It has been the fourth consecutive weekends with double digit transaction volume. Among which, Kingswood Villas in Tin Shui Wai was the best-selling project with four units sold.

Sheung Shui Town Center hit new highs
Unit A, top-floor, block 4, Town Center, Sheung Shui, with a saleable area of 492 sq ft, together with a terrace and a rooftop, has been transacted at HKD 7.71 million or HKD 15,671 per sq ft. Both the transaction price and unit price reached new high of the estate.

AVA 61 rented at HKD 63 psf
Special unit A, low-floor, AVA 61, Cheung Sha Wan, with a saleable area of 232 sq ft and a 1,415-sq-ft terrace, has been rented out at HKD 14,500 per month or HKD 63 per sq ft. The original owner purchased the unit at HKD 6.88 million in 2018, earning a rental return of 2.5%.

(Sources: Vigers Research and market news)

Land sales revenue of 1H breaks 11-year low
While the number of land launches by the government were limited, land sales performance over 1H 2020 stayed sluggish. Five residential land sales by tender were recorded in the 1H of the year, cashing in about HKD 10.337 billion, plunged 81% y-o-y and hitting a 11-year low. The number of land sales transaction decreased by two cases or 28.6% y-o-y.

Century Tower changed hands at HKD 140 m
A top-floor special unit, Tower 2, Century Tower, Mid-Levels, with a saleable area of 2,786 sq ft, has been changed hands at HKD 140 million or HKD 50,000 per sq ft. The original owner purchased the unit at HKD 128 million in 2011, making a book profit of HKD 12 million in nine years.

Residence Bel-Air rented at HKD 250,000
A high-floor duplex unit, Tower 8A, Phase 6, Residence Bel-Air, Pok Fu Lam, with a saleable area of 4,136 sq ft, together with a terrace and a private pool, has been rented at HKD 250,000 per month or HKD 60 per sq ft. The new rent is 28% lower than the previous rent.

Shop in Ngau Chi Wan sold at HKD 43 m
Shop B, G/F-M/F, Choi Hung Villa, 60 Lung Chi Path, Ngau Chi Wan, with a total area of 3,364 sq ft, has been sold at HKD 43 million or HKD 12,782 per sq ft. The original owner purchased the shop at HKD 4.3 million in 1990, making a book profit of HKD 38.7 million and a nine times appreciation.

(Sources: Vigers Research and market news)

Average unit price of 50 major estates up 1.7% m-o-m in May
According to market news, the average price of 50 major estates recorded HKD 14,951 per sq ft in May, up 1.7% m-o-m (April: HKD 14,698 per sq ft). The unit price has been increased for three consecutive months, with an accumulated rise of 3.6%, reaching a 9-month high.

Entire floor at Tai Hung Fai (Tsuen Wan) Center sold at HKD 83 m
According to market news, entire 11/F, Tai Hung Fai (Tsuen Wan) Center, 55 Chung On Street, Tsuen Wan, with an area of 8,903 sq ft, has been sold at HKD 83 million or HKD 9,323 per sq ft. The current monthly rent of the floor is HKD 345,000, representing a rental return of around 5%.

Shop rent at Tuen Mun slashed 40%
Shop 3, G/F, 15-19 Kai Fat Path, Tuen Mun, with an area of 500 sq ft, has been leased out at HKD 150,000 per month or HKD 300 per sq ft. The rent is 40% lower than the asking rent.

Novum West sold at HKD 35,945 psf
Unit B, 39/F, Tower 1, Novum West, Sai Ying Pun, with a saleable area of 333 sq ft, has been transacted at HKD 11.9698 million or HKD 35,945 per sq ft.

(Sources: Vigers Research and market news)