The shortage of commercial buildings, the consortium is optimistic about the prospects
The industrial land transfer to commercial buildings has set a new record high, reflecting the shortage of commercial buildings as a whole. The non-core area office rents are ideal, which makes the consortium look good.
The First Group is preparing to make a premium for its Tsuen Wan Industrial Site at a record-breaking price. Liwan District is not a traditional business core area. Today, the land premium is a record high, reflecting the prospect of the consortium optimistic about office buildings in non-traditional core areas.
Non-traditional core area
In recent years, the rents and prices of commercial buildings in the Central District have repeatedly broken, driving the rental prices of surrounding commercial districts such as Wan Chai and Sheung Wan upwards. Many companies have already considered moving out of the core areas and developing to Hong Kong Island East and East Kowloon.
At the same time, with the maturity of the infrastructure, the rental prices of commercial buildings in the vicinity of Sham Shui Po and Kwai Chung District are also upward. According to the data of DTZ, the occupancy rate of all commercial buildings in Hong Kong is about 7.8%, which is kept at a low level. It is reflected in the overall shortage of office buildings. Not only the commercial rents in Central and Hong Kong are satisfactory, but also the investment value.
Taking the First Group as an example, the K83 Jiaxia Building in Kwai Chung District was demolished last year. At that time, nearly 90% of the units were sold for 10 days. The cost per square foot of individual units was 20,000 yuan. The Tsuen Wan District is a traditional industrial area. In recent years, new industrial buildings have been completed. For example, One Midtown Industrial Building in Haisheng Road has an average price of about RMB 3,700 when it was opened for sale in the early years. After many years, the price has recorded a significant increase. The second-hand transaction of the building in recent days, the average price of about 7,000 yuan.
Tsuen Wan Shao Jia Building for sale with investment value
In terms of commercial buildings, Tsuen Wan has always lacked supply of Jiaxia. The Jiada Global Centre, which was occupied a few years ago, is also for rental purposes. A few of the buildings are available for sale. I believe that the first group will look at business opportunities and have confidence in future dismantling. Therefore, it is willing to pay the price for the project.