Non-core area shop, this year, expected price increase of 10%
In the second half of the retail market, Midland Industrial and Commercial Store expects that the core area rental price will remain stable, with a full-year increase of less than 5%. As for the non-core area, the rental price is expected to increase by 5% in the second half of the year. The performance is better than the core area.
Mong Kok Waterloo Road Shop 180 million change hands
Recently, a large number of shops have been recorded in the market. They are concentrated in non-core areas. For example, the ground floor of Shop 67A, Waterloo Road, Mong Kok, together with the 1st and 2nd floors, is about $180 million. The floor space is about 3,638 square feet. The first floor area is about 2,978 square feet. The second floor is about 2,553 square feet. The transaction price is about 19,631 yuan. The property is currently leased by two restaurants. The monthly rental income is about $392,000 and the rental yield is about 2.6%. It is understood that the new buyer is Gu Mingjun, who is known as the “electronic king."
In addition, G/F, G/F, 1/F, Ground Floor, No. 93, Cannon Street, To Kwa Wan, has a total area of about 14,196 square feet and was sold for $158 million. It is about $11,000 per square foot.
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As for the core area, Shops 7A & 12B, G/F, Wah Yuen Building, 36-50 Le Lok Road, Tsim Sha Tsui, have a total area of about 550 square feet. The transaction price is $60 million and the price is about $109.10. The monthly rental income of the shop is about 118,000 yuan and the return is about 2.4%. The original owner purchased in 2004, only about 6.18 million yuan, now holding the goods after 14 years, the book earned a profit of 53.82 million yuan, leaving a profit of 8.7 times.
Recently, the largest hand shop was sold for the sale of two shops in Causeway Bay and Wan Chai for $900 million. It involves a number of shops, including the ground floor of the Wing Tak Building in Causeway Bay and the whole floor of the first and second floors. 22,000 square feet, the current tenants include two-storey restaurants, underground tea restaurants, seafood fish stalls, change shops, engineering and clothing stores.
Another property is located in the ground floor of the Led Tak Building in Wan Chai and on the first and second floors. The underground tenants are building materials, engineering, real estate, etc. The tenants on the 1st to 2nd floors are hotels. It is reported that the original owner was the developer of the building. In the early years, the upstairs house was demolished, and the shop reserved for ten years. It is a rare place in the core area. Now it is successfully acquired by Bo Shu. He is expected to reorganize the property for tenants. Or use it for personal value. In addition, a basket of Lide Mansion in Wanchai, which accounts for a certain number of titles in the building, is beneficial to mergers and acquisitions in the future.
Lu Zhanhao, director of Midland Wangpu, pointed out that in the first half of the year, the retail market is recovering. In addition to the continuous increase in visitor arrivals and retail sales for many consecutive months, many local listed retailers and mall developers have continued to report good results. That means the worst time for retail has passed. Looking forward to the second half of the year, although the renminbi has depreciated in recent months, or affects the desire of mainland visitors to visit Hong Kong, he believes that the local unemployment rate is still at a low level. The gross domestic product and the median household income are still at a high level. I believe that It can reduce the impact of RMB depreciation. He believes that the price of the rent in the core area will remain stable in the second half of the year, with a full-year increase of less than 5%. As for the non-core area, the rental price is expected to increase by 5% in the second half of the year, and the annual increase is expected to be about 10%.