Kwun Tong’s HK$30 million shop overtakes glitzy Causeway Bay
A retail shop in the industrial area of Kwun Tong recently sold for HK$30 million, outpacing prices in Hong Kong’s glitzy shopping belt
The 301 square foot shop at the Kwun Tong Plaza sold for HK$100,000 per square foot, according to a Thursday press release, a record that’s double the current commercial property price in Causeway Bay. The seller made a 130 per cent return from an initial purchase made in 2011, said Celeste Liu Ching-ping, manager of Sheraton Valuers, the agent for the transaction.
The rents and sales prices of arcade shops of Causeway Bay, where Apple Inc, DJI and other global brands locate their flagship stores, are among the highest in Asia by square footage. Several shops changed hands recently for HK$50,000 per sq ft, according to JLL’s director of capital markets Eunice Tang.
Telecom Digital’s Kwun Tong shop space will combine two subdivided lots, which currently generate a combined rental income of more than HK$90,000 every month. The first lot is occupied by a money changer, and the second a vendor of durian desserts.
“The shop is located at the corner and next to the escalator, it draws a lot of passenger traffic,” Tang said.
The transaction is further evidence of how the real estate prices of Hong Kong, already the world’s most expensive city to live and work in, continues to set records in every nook and cranny of the industry, as capital is diverted from residential into commercial space amid the government’s market-cooling measures.