Central Center, breaking the top spot transactions are not completed building next year, expected 25%
In 2017, the property investment market has focused on Grade A commercial buildings. The center of Central, which is the core of Central District, is also the focus of attention. The historical records of Hong Kong-Shanghai buildings have all been refreshed regardless of the transaction price or the price per square foot. It is expected by the industry that the cost of building A can rise by 25% in 2018. The most awaiting news of the A-share market in 2017 is sure to be that Cheung Kong (01113) announced in early November the sale of a 75% ownership interest in the Central Center to a Chinese-funded consortium at an outstanding price of 40.2 billion yuan. Record.
Kowloon Plaza also recorded record-breaking sales. Greenview China Land (00095) won 8 Bay East, a commercial building in Kwun Tong for $ 9 billion in October 2017, becoming the most expensive deal in Kowloon. Although the market entry rate of Chinese capital in 2017 has dropped markedly, one shot was a record deal. At present, the four commercial buildings that have traditionally been the most expensive in Hong Kong are all funded by Chinese or Chinese financial institutions.
The most expensive 4 inclusive
As for the strata’s price per sq. Ft., Also created by the Central Center, the 79th floor of the already disintegrated Central Central Center was sold for $ 738 million in September 2017 at a price of $ 55,900 per sq. Ft. Wearing a $ 50,000 case of a building transaction has become the new benchmark for the price of a flat in a building in Hong Kong. Other construction costs are far behind, the second largest in Central, Queen’s Road Central, No. 9, 2017, the most expensive transactions per square foot is only 39,800 yuan. Huang Han-cheng, chief executive of APL (00459), pointed out that for the first 11 months of 2017, the price per square foot of Jia Mansion in the core area has risen by 19% and is expected to rise by 20% for the whole year. Due to the underdeveloped commercial markets in the past few years, the number of footfalls in the market will be stimulated after a number of high profile transactions have taken place. Given the low vacancy rate in the core area and the sought after fund raising by all parties, it is estimated that property prices will rise 20% to 25% in 2018. It is believed that a lot of flats in Central and Admiralty can rise above $ 40,000 mark.
As for Tsimshatsui and East Kowloon, the increase is expected to be only 5% to 10%. Due to the expected widening of the distance between the footside and Central Mansha, Central can drive more transactions in the two districts.
Retail rebound shop turnaround
As for the retail space, due to the pick-up in the retail industry, the rental gradually found support and the trading started to move. As of mid-November 2017, the number of shop transactions was 1379, an increase of 7% over the full year of 2016.
However, the majority of large-scale shop-sale transactions in 2017 are located in non-core areas such as Hoi Ming Shopping Center, Hung Hom, which has been opened for about $ 789 million, and the redemption of about $ 700 million, Queensway Lippo Center Shopping Center. In the core area, the turnover plummeted, with only about $ 700 million being traded on the ground floor of An Lok Building, 86-88 Nathan Road, Tsim Sha Tsui.
Pan Zhiming, managing director of Zhongyuan (commercial and industrial), said that in 2017, the sale and purchase of bunk beds was gradually ebbing but dominated by the Minsheng District. In particular, the rents in Yuen Long and Tsuen Wan increased and the trading volume increased. Core area rent is still looking for the end, but due to strong owner of the stock, so few transactions. Due to the rebound in the tourism and retail sectors, he expected the rent for ground floor paving in the core area to stabilize after the Lunar New Year in 2018, and the Minsheng District shop tenancy to rise by 15% to 15%. As a result, the purchase and sale price of the shops will be supported by the expectation of rental growth and the estimated shop price may rise by more than 10%.