After QE3, hot money overflowed into shop mmarket and immediately took along the number of property deal rising. Large amount deals rising stimulated the property deal amount sharply rised to nearly HKD 10 billion which higher 50% than data in common busy season making the amount in historical new peak. Zhou Man-jie, the director of Ricacorp Properties research department pointed out, hot money is more abundant after the QE3. Plus with money transfered to shop market because of BSD and SSD, it is estimated that the market trading must continue busy. And the number of buy and sale register can easily exceed 400 cases every month. In addition, Midland Hot Shop also take optimistic attitude on shop market prospect this month and they look good in some newly developing retail district such as Tsuen Wan District and similar low cost shop market.
According to data from Land Registry, Hong Kong had 619 cases of shop trade registers in October (The number shows the actual market situation before 2-4 weeks) which was sharply rised 38% than 448 cases in September breaking the new highest record maintaining for 63 months. In the same time, large amount deals rised remarkable and shop average value rised followed taking along the whole market deal amount increase 55% to about HKD 9.863 billion by month. It is the new highest record of single month deal amount from 1996.
Most were medium and high price deal cases
If divided by property price, medium and high price shop deals were the most during 6 price classifications. Data showed, the number of buy and sale register cases on and above HKD 20 million sharply rised 79% to 140 cases in October. It also rare that the single month register amount can comparable to register number of small price shops under HKD2 million. If divided by area, Tsim Sha Tsui area had the largest increasing range. The register case number sharply rised 171% to 46 cases and most were large amount deals making property deal amount largely rised 1.1 times to HKD 796 million. If calculated by deal number, deals in Yuen Long District were most frequent which was accumulative 69 cases making Yuen Long were top of shop hot selling area last month. Sham Shui Po ( 55 cases) and Mong Kok (52cases) were far behind.
It is estimated the deal maintains on about 500 cases this month
Lu Zhan-hao, the director of Midland Hot Shop pointed out that, under situation of floating capital is aboundant, investors take positive attitude on shop future market. It is expected the QE will help to stimulate US and even the global economy back to healthy level. And also expected that the HK shop market still positive and the register number maintain above 500 cases. They look good on some newly developing retail district such as Tsuen Wan District and similar shop market.
In fact, the shop market trade is busy this month. Lun Zhi-ming, from Midland Hot Shop expressed, underground shop B and C of Yu Ann commercial building in Lockhart Road, Wanchai of which the cover area is about 1,200 sq ft sold at about HKD 69.68 million at sq ft price about HKD 58,000. It is known, original owner in business of building materials for many years and bought above property at about HKD 10 million in 2002. It largely appreciates nearly 6 times since hold until now and the book profit high to HKD 59.68 million.
According to the data of Land Registry, India shipking family members bought underground , 1st -3nd floor, 8th , 9th , 11th floor and rooftop of No. 64th-66th , Wellington Street in Central. The register buyer is JUBILANT CENTURY LIMITED. The company director are CHELLARAM SHAM LOKUMALand CHELLARAM VIKRAM SHAM who are members of India shipking family.
It is known, original owner is Wu Gne-hai et al. who are senior investors bought the above property at HKD 143 million from investor JIBAO in October 2009 and they earned book profit HKD 307 million after holding 3 years.
According to the market source, underground 14th shop in No. 383-389C of Nathan Road in Jordan sold at HKD 65 million. The cover area is about 500 sq ft and used for shoes shop now. The monthly rent is about HKD 80,000 and the rental yield is about 1.48%. Besides, two middle floor units of Acer capital building in No. 135 of Hoi Bun Rd in Kwun Tong each cover area is about 12,000 sq ft and separately received hold purchasing talks from investors at HKD 115 million and HKD 117 million.
