Wong Chuk Hang industrial building up for sale after opening of South Island MTR line
Exclusive retailer of Mercedes-Benz automobiles in Hong Kong and Macau puts its 10-storey industrial building in Wong Chuk Hang up for sale
Zung Fu, the exclusive retailer of Mercedes-Benz automobiles in Hong Kong and Macau, has put its 10-storey industrial building in Wong Chuk Hang up for sale as office demand in the area grows after the opening of the South Island MTR Line.
The property at 38 Wong Chuk Hang Road, now known as Zung Fu Aberdeen Garage, covers a site area of 10,900 square feet. The tender closing date is March 8.
The buyer could develop an office/hotel project on the site if they applied for lease modifications and paid the land premium levy.The maximum gross floor area is 163,500 sq ft, according to JLL, which is the sole agent for the deal. Agents estimate the site could be worth about HK$1 billion.
“On the back of low vacancies and positive rental reversions, a growing number of business users are looking at options outside of Central. Causeway Bay, Hong Kong East and increasingly Wong Chuk Hang in Island South are attracting business users from more expensive office districts,” said Alex Barnes, head of Hong Kong markets at JLL.
The new MTR extension linking the southern part of Hong Kong Island to Admiralty opened on December 28. The HK$16.5 billion line, operated with driverless three-carriage trains, will run from South Horizons in Ap Lei Chau to Admiralty via new stations at Lei Tung, Wong Chuk Hang and Ocean Park. It is expected to serve some 170,000 people per day.
In its January report, property consultant Colliers International said there was an increase in inquiries for office space in Wong Chuk Hang. The area is attractive to tenants due to lower rents. According to Colliers, monthly net effective office space rent in Wong Chuk Hang is HK$32 per sq ft.
Wong Chuk Hang is cheaper than other major decentralised submarkets such as Island East and Kowloon East. It is located within 15 minutes of travel time from the CBD, which is closer than other decentralised submarkets, Colliers said.