The New Territories Minshengpu is well-received.
The People’s Livelihood Shop in the New Territories is highly sought after. In the past two months, at least 6 large-scale shops with a transaction price of over $70 million were recorded in the district.
Under the factor of favourable interest, the overall podium trading in Hong Kong fell for two months. According to the latest information from the Ritz-Carlton Property Research Department and the Land Registry, 148 shop transactions were recorded in August 2018, which was 11% less month-on-month.
Poor performance in the core area
The trading volume of the shops decreased. The performance of the core areas was relatively poor. For example, the shops in Central were not recorded. The number of shops in Mong Kok was 14 and fell by 13%. In contrast, the shops in Minsheng District performed better. For example, in the Liwan District, 10 transactions were recorded in August, which was twice as many as in the previous month.
In fact, investors switched to the shops in the Minsheng District and led the trading, focusing on large-scale shops. In the past two districts, at least 6 transactions were recorded in the New Territories with a transaction price of 70 million yuan or more. The most popular investors in Kwai Tsing District were three of them.
The largest transaction was for the Hong Kong Shoe King, the owner of the company, which was purchased for $338 million in Shops 93-95, G/F, Kwai Sing Centre, Kwai Chung and Yi Hop Road, and a high-rise basement with a total of about 44,550 square feet. The tenant includes the care center, which costs about 7,587 yuan.
In addition, the senior investor, Mr Lai Wing-yiu, who had cashed out of the Central Shop for over $400 million, immediately re-entered the Tsuen Wan Centre Phase 2 shopping mall with $275 million, involving 38,000 square feet. The property occupancy rate was about 80%. 420,000 yuan.
Investors change horses and low water properties
It is worth mentioning that the above two tenants, including the old care center, have a price of less than 10,000 yuan. In fact, the tenants of the Occupational Care Centre have always been stable, and it is not easy to move out or terminate the lease to provide stable rental income for the owners. Taking the above-mentioned Tsuen Wan Centre as a shop, the rental return is over 2%, and the return is higher than that in the core area.
Secondly, Tuen Mun, Tai Po and Tai Wai also recorded large-scale transactions in the livelihood shops. There is a shop No. H, No. 7-9, Daguangli, Taipu, with a base area of 900 square feet. The original owner entered the market with a price of 108,000 yuan in 1972. It has changed hands for 46 million yuan in 46 years, and the book has a profit of 77.792 million yuan. More than 700 times.