Money sought after commercial prices fell
Commercial building prices have historically underperformed the market, and since the Murray Road car park was sold at a record-breaking price, commercial buildings have been hotly traded so far. Due to the availability of small and medium-sized commercial buildings in Central, there is a large demand.
This year, office building broke repeatedly.
In 2017, the commercial construction business was strong. In 2018, the commercial building sales continued to flourish. Although the number of transactions was not large, the price was repeatedly broken. This year alone, the Far Eastern Financial Center, Lippo Centre, 9 Queen’s Road Central, Sheung Wan Zhongyuan Building, and Causeway Bay Convention Plaza Office Building recorded record highs.
Put in the Central District, buy rare rare
Since the middle of last year, Henderson (00012) has sold a land of $50,000 per square foot to the land of the Murray Road car park in Central. In fact, in recent years, the overall property market has been improving. Among the three categories of investment in industrial and commercial shops, the relatively low prices of commercial buildings and industrial buildings in the early years have fallen behind. With continued abundant capital and low interest rates, funds have flowed into the investment market and they have chosen relatively low water prices. Property investment, commercial buildings into the two most popular investment targets.
Funds are sought after in the core commercial buildings. At the same time, in Central, Sheung Wan and Admiralty, there are not many A-Ha buildings that can be bought and sold, and the Central District is even rarer.
Past transactions mainly centered on Queen’s Road Central No. 9, Global Building, and the Central Centre, which was sold for $40.2 billion last year. There are not many trading units available, and quality units are extremely rare. At present, the two most expensive office units in Hong Kong are located on the 34th floor of Queen’s Road Central and 79th Floor of Central, both of which are the top units of the property. This is the top floor unit of the latest transaction. It is understood that the owners did not take the initiative to release the market. In the end, because the consortium negotiated with a record price to negotiate purchases, it can be seen that due to the low demand for supply, the prices of commercial buildings in Central District hit record highs.