HK$1b Causeway Bay block for sale

A local investor is set to release his HK$1 billion retail-residential building in Causeway Bay for tender as commercial property prices in the city go through the roof.

The seller bought the 13-storey building, at 60-62 Yee Wo Street - opposite Paliburg Plaza - for HK$28 million in 1987. Property agents estimate the building has since risen in value to HK$800 million to HK$1 billion.

Land Registry records show the property is owned by Bloomland Company, controlled by Lawrence Lim, an active investor who focuses on commercial properties, and owns several shop and office units in Central and Causeway Bay.

'The value of the building has gone up a lot,' said Stanley Wong, senior director at CBRE, the agency handling the tender. 'There have been several record-breaking transactions in the commercial property market of late, which prompted the owner to release it for sale.'

With low interest rates and rising retail rents, property investors are scouting for commercial buildings and other retail properties, particularly in areas that are top destinations for mainland shoppers, such as Causeway Bay. This has led to a steep jump in commercial property prices.

Last month, a shop with a usable area of 192 square feet at 83 Percival Street was sold for HK$178 million, or HK$927,083 per sq ft, becoming the most expensive retail property in the city in terms of price per sq ft. The price was 257 per cent higher than what the seller had paid in 2009.