According to the latest statistics released by the Census and Statistics Department, at present, over 90% of Hong Kong’s GDP is supported by the tertiary industry, resulting in strong demand for office space at all levels
In recent years, the Government has released a number of commercial sites in the core areas, such as Central and Kai Tak, as well as plans to redevelop the General Post Office and the Revenue Tower. However, there are still various commercial service industries in the market that have demand for other levels of office space, such as Import and export trade, design and marketing, small professional services, and some startups tend to look for B-grade office buildings.
Tuen Mun Traffic Network is perfect
In the recent sale of land in the Government, although there is no non-core commercial land suitable for small and medium-sized developers and private investors, they can still apply to the Lands Department for alteration of land leases and land premiums after the acquisition of the old industrial buildings. To obtain land for development in non-industrial commercial buildings. This has the following advantages. First, industrial buildings still have lower market prices than other property categories such as retail and office buildings. The prices of industrial buildings in Yuen Long and Tuen Mun are still at a low level, especially in Tuen Mun. With an increasingly sophisticated transport network, the Tuen Mun-Chek Lap Kok Link will link the Hong Kong-Zhuhai-Macau Bridge Hong Kong Port and the northern part of Lantau.
Industrial site plot ratio relaxed to 20%
In addition, San Po Kong has the geographical advantage of being adjacent to Kai Tak. After the completion of the Kai Tak Building in the future, it will drive the demand of the E-Architecture in the district and provide cheaper office building options for small service companies and so on. Wedge machine; Second, the high rent of office buildings in the core area continues, pushing enterprises to move to non-core areas, and will promote the non-core area of non-core area in the future; third, with the development of telecommunications technology and the use of technology, More and more business service companies do not need office buildings in the core area.
The Revitalization of the Industrial Building Scheme 2.0, which was recently relaunched, has widened the plot ratio to as high as 20%. It is suitable for redevelopment of non-residential buildings in the entire industrial building completed before 1987. If the industrial building is 15 years old or above, it can also be activated and modified. This will encourage investors to purchase industrial buildings for developers.
Light market offers opportunities and advantages
In recent months, a series of whole building industrial estates have been changed. As a revitalisation or redevelopment, for example, Roche Estate purchased the entire building at 822 Lai Chi Kok Road; Deng Chengbo purchased the Central Industrial Building in Kwai Chung; and Xing Sheng created the purchase of Chai Wan Mei Li Cang Building and so on. There are also investors in the market who intend to unify the industrial and commercial rights and obtain land for reconstruction purposes. For example, Fufeng Capital invested 330 million yuan to purchase the 4th floor of Wangshi Building in Kwun Tong. Together with other owners, the company has reorganized the building with a unified title. The site area of the property is about 10,000 square meters. The project is rebuilt into a new industrial building and the total floor. Can exceed 140,000 square feet. In fact, Kwun Tong, Kwai Chung, Cheung Sha Wan, Lai Chi Kok and Chai Wan are all hot spots. In recent months, more industrial transactions have been recorded.
Although it takes time and process to be unified, buyers may need to take a strong auction procedure, thus increasing the cost of acquisition. However, due to trade tensions between China and the United States and the current social instability, the economy is slowing and market sentiment is weak. Willing to sell the property, and accept the bargaining space, and even the industrial building owners, the initiative to jointly sell more than 80% of the title, the current market can provide investors with more opportunities and advantages.