Glorious Sun chairman Charles Yeung Chun-kam sold the company's privately-owned commercial building in Cheung Sha Wan to a local buyer for HK$1.51 billion, the biggest transaction value so far this year.
The sale of the 20-year-old Trade Square highlights how local investors have become active in chasing high-yield properties amid the negative interest rate environment.
'The buyer is a local family that will keep it for long term investment,' said Peter Yuen, head of investment and sales for Hong Kong and Macau at Savills, without providing more information.
As foreign real estate funds have slowed down their pace of acquisitions, he noted that a growing number of local families were actively looking for investment opportunities in the property market.
Last month, another local family paid HK$600 million for the retail portion of Ginza Plaza in Mong Kok. Early this year, an investor snapped up Pun Tak Mansion residential building in Causeway Bay for HK$500 million with plans to convert it into serviced apartments, he said.
'More capital will channel into property as Hong Kong turns into a negative interest rate environment,' he said.
The 12-storey Trade Square comprises 521,160 square feet of eight office floors, and several floors of car parking. The first and ground floors are retail shops.
