The outlook for the retail market is unclear, and the core shopping districts have reappeared and the streets have significantly eroded
A shop in the trendy area of No. 1 Guanghua Street, Mong Kok, was sold for about 12 million yuan, which is about 30% lower than the purchase price eight years ago. It is expected to be the largest erosion case in recent years.
Cases of erosion of street shops in Kwong Wah Street, Mong Kok
Sources revealed that the site area is about 172 square feet, and the current situation is good. It is said that the shop changed hands in the form of a trading company, with a transaction price of about 69,767 yuan, and the new buyer is expected to be a senior investor. It is reported that the original owner of the shop purchased the site for about 17.18 million yuan in 2012, which means that the book surface eclipse exceeded 5 million yuan. The shop had been bidding up to $ 20 million last year, but it was reduced to $ 13 million in August, but it was not accepted.
At the peak of this year or two, the monthly rent had reached about 58,000 yuan, and has since fallen. The last tenant of the shop is a watch shop, with a monthly rent of about 30,000 yuan. At present, the shop rents for about 32,000 yuan. Li Genxing, chief executive of Shenghui Retail Store Fund Management, said that the store has water levels, and believes that it can attract small food shops or specialty drink shops to rent in the future. He added that in recent years Mong Kok has had similar eclipse trading, but the general extent of the erosion is not as serious as the above.
According to statistics, a single-floor shop with an area of about 500 square feet in Guanghua Street was sold for about 63 million yuan in the first quarter of last year, compared with a purchase price of 68 million yuan in 2012, with a book value of over 7%.
Kwong Wah Street Shops
On the other hand, it is reported that the single-floor shop, also on Guanghua Street, has an area of about 967 square feet. It was previously sold for 58 million yuan, and subsequently split to 48 million yuan. However, it has not been accepted. Down to about 40 million yuan, a cumulative decrease of 18 million yuan. It is reported that the shop was located at a purchase price of 46 million yuan in 2012, which is about 13% lower than the purchase price.