Hong Kong auction oddity: 37 court-ordered properties for sale, including a 60 sq ft space with a reserve price of US$128
- C S Auctioneers said the tiny industrial space will be auctioned without a reserve price, meaning that it will go to the highest bid above the HK$1,000 threshold
A 60 square foot industrial space in Fanling will be auctioned off at the ultra-low starting price of HK$1,000, among a batch of 37 industrial properties in adjacent buildings set to go under the hammer as part of a court-ordered sale on Wednesday.
The company overseeing the property sale, C S Auctioneers, said the tiny industrial space will be auctioned without a reserve price, meaning that it will go to the highest bid above the HK$1,000 (US$127.77) threshold, or HK$16 per sq ft.
“Anyone who can afford the HK$1,000 can come to make an offer,” said Alger Cheng, general manager of auction department at C S Auctioneers. “The buyer can use it for whatever the space suits.”
The tiny industrial use space is located next to the atrium on the ground floor of Hong Leong Plaza, an industrial building in Fanling in the New Territories.
Thirty-seven properties, all court-ordered properties, will be auctioned off on Wednesday including storehouse, car parks and other industrial units of the building for bid next week. All properties are from two buildings in Fanling.
“I think it is impossible to get some space for this price. It is just a gimmick to attract investors,” said Stanley Chau, regional director at the
commercial and industrial arm of Midland Realty. “The market has been quiet and who would put extra money in such a remote area at this moment when everyone is getting cold feet.”
The most expensive unit on offer is a 1,900 sq ft industrial space for HK$12.4 million, or HK$ 6,526 per sq ft, while others are forecast to range from HK$620,000 to HK$3.3 million.
The court-ordered properties will not provide the original copy of deed of assignment, showing the transfer of ownership, which means potential buyers cannot get financing from the bank.
It is the latest sign that Hong Kong has turned into a buyer’s market. Sentiment among buyers in the city has turned sharply lower, a deterioration in confidence linked to the simmering trade dispute between the US and China, as well as downbeat global asset markets.
New home prices will likely drop by up to 15 per cent in the next 12 to 18 months, taking them back to the same price level as the fourth quarter of last year, according to Moody’s Investors Service.
A price index that tracks lived-in homes in Hong Kong fell 1.44 per cent in September on month, the second straight monthly decline, according to data released by the government’s Rating and Valuation Department.
The drop was significantly larger than the 0.08 per cent decline in August on month.
Hong Kong home prices fell 4 per cent for the last eight weeks, according the latest data from Centaline Property.