Sales of Hong Kong industrial properties hit seven-month high

PUBLISHED : Tuesday, 14 June, 2016, 5:11pm
UPDATED : Tuesday, 14 June, 2016, 5:11pm

The industrial market in Hong Kong is back on investors’ radar as the number of transactions soared to a seven month high in May, according to Ricacorp Properties.

There were 267 transactions concluded in the industrial market last month, up 22 per cent from 218 deals done in April, it said.

“The sales of industrial units also rose for two straight months,” said Raymond Chu, senior sales director at Ricacorp’s industrial and commercial department.

Total transaction value saw a 41 per cent month on month increase to HK$2.16 billion in May, it said.

Last month, the second to fifth floors at Grande Building in Kwun Tong changed hands for HK$300 million, the largest transaction in terms of value.

The second highest transaction by value was a property on the ground floor of unit CI and C2 in Yau Tong Industrial Building in Yau Tong which sold for HK$42 million, while the second floor unit 1 and 1A at Hoi Luen Industrial Centre in Kwun Tong went for HK$33.75 million.

The sales of industrial units also rose for two straight months
Raymond Chu, Ricacorp Properties

Chu said industrial properties in the price range of between HK$10 million to HK$20 million registered a month on month increase of 175 per cent to 33 deals last month. In April, there were only 12 deals in this price category.

In the price range of HK$5 million to HK$10 million, it said there were 98 transactions, up 104 per cent from 48 deals in April.

“Transactions in these two price categories were mainly driven by the sale of units in theW668 industrial building in Cheung Sha Wan,” he said.

San Po Kong saw the largest growth in terms of transaction volume with 15 deals done in the district last month, up 88 per cent from eight transactions in April. It was followed by Cheung Sha Wan which had 72 transactions, up 80 per cent from April.