The commercial real estate market in Hong Kong is constantly changing and the owners have adjusted their rent collection strategies
The 1001 King’s Road, a new project in Quarry Bay, which will be developed by Tai Hung Fai Industrial Estate, will be completed this quarter. The property will be converted from the original Ginza-style commercial building to a corporate company that specializes in the relocation of the core business district. The intention is to rent 60 to 65 yuan.
This season is completed, renting 180,000
Located at 1001 King’s Road, 1001 King’s Road, Quarry Bay, at the junction of King’s Road and Wah Lam Road, it is a 31-storey commercial building with a total gross floor area of about 124,000 square metres. It is expected to be completed this quarter. The standard unit area of the building is from 3049 to 6190 square meters. The current intention to rent is from 60 to 65 yuan, that is, the monthly rent is more than 180,000 yuan.
According to the information, 1001 King’s Road was formerly known as Jinshan Building, 999 to 1013, King’s Road. Dahonghui began to acquire in 2009. It was not until 2014 that it re-established its title through the strong auction. It took about 10 years from the start of the acquisition to the completion of the building.
During the initial deployment and redevelopment, the property was intended to be a mixed development of hotels and commercial buildings. Later, due to factors such as the sluggish tourism industry, the market demand for hotel rooms slowed down. Therefore, the Ginza-style commercial buildings were developed to attract tenants such as restaurants. However, as the rents in Central have risen, many companies and even multinational corporations have moved eastward to more than half of Hong Kong Island East. Therefore, 1001 King’s Road also changed its rental strategy before it was completed, and waved it to corporate customers for office use.
Force the core area tenants
Liang Shaohong, founder and chairman of Dahonghui Group, said that the Hong Kong Island East Commercial District is forming and more companies are willing to enter. 1001 King’s Road will mainly attract tenants in traditional business districts such as Central and Wanchai, and believe that Hong Kong Island East’s rent is competitive. However, apart from the shop floor, the middle and lower level flats will also consider leasing to the catering industry. As there are many office buildings in the district, the number of restaurants is not sufficient to meet the demand.
It is understood that the Taikoofang in the same district of Taikoo Real Estate (01972) was completed last year and was fully leased, and the lease was about 55 to 75 yuan. New World (00017)’s K11 ATELIER King’s Road was approved for occupation paper this month. The total floor area is about 440,000 square meters. It has been pre-leasing about half of the floor, with an average rent of about 60 yuan. Therefore, the rent for 1001 King’s Road is similar to the market price.