(By Huang Jiaming)
Starting Kowloon East has been normally heard in the market these year, but how long it needs? And start what property? Or which industry? General people may not have deep understand. Huang Baowei, the Industry and Commerce Area Sales Director of Hong Kong Property, expressed the changing concept in Kowloon East can across at least 10 years, and since both the rent and sale prices of commercial building in this area are in low level, so it is estimated commercial building may possible be at least 5% better than leading market this year.
Low cost causes more and more attention.
Huang Baowei expressed when accepting interview by journalist from this news days before, commercial building is in lower price for investors, but no many people paid attention to it more than 10 years ago. After SARS broke in 2003, economic slowly warms up, plus with low interest environment continue, leading commercial building market being focused more and more. First are Kwai Chung, Tsuen Wan and Yuen Long. After Starting Kowloon East comes up, Kwun Tong and Kowloon Bay are valued highly by the market.
Huang Baowei added, as for Kowloon East, the rebuilding of Yue Man Square in Kwun Tong making banks moved from Yue Man Square to Sun Hung Kai's Millennium City and How Ming Street nearby, leading many hotels were built there in recent years, and bringing more and more restaurants and chain stores; Wang Chiu Road in Kowloon Bay also becomes another " car traveled street" after Gloucester Road in Hong Kong Island. The whole Kowloon East's development drives the commercial building there to be hot, leading vacancy rate less than 5% in recent years.
It is crowded but rent is still in low level.
The more important is, commercial buildings in Kowloon East are crowded ,with nearly 300 buildings in Hoi Yuen Road and Hung To Road, plus with supported by infrastructure projects like cruise terminal and so on, so it has stronger growing power than other commercial building areas such as in Kwai Chung, Tsuen Wan and even To Kwa Wan and Hung Hom. Huang Baowei referred to an on line shoes company who moved to a whole layer in 9th floor of United Overseas Plaza in Kwun Tong from 4,000 sq ft unit in Wan Chai recently, and both units are in monthly rent about HKD 100,000, but unit in United Overseas Plaza is 8,229 sq ft, larger than the former one by more than one time, with monthly average sq ft rent only at HKD 13, which is still low even rent has rose many times in recent years.
Besides, Midland Commercial which is same series like Hong Kong Property gained exclusive right to put on sale one high floor unit in International IND Bldg with lease, the area of which is about 15,140 sq ft, and its intention price is nearly HKD 106 million, with discounted average intention sq ft price at about HKD 7,000, which is reasonable market price. This unit is partially rented out as mini storage currently at monthly average sq ft rent of about HKD 10, and the monthly rent is about HKD 150,000. Since there are less offers from International IND Bldg recently, so it will be popular by prediction. In fact, Sun Hung Kai's pre-sale commercial building in Hoi Bun Rd will be put on sale soon, and market estimated the sq ft price of this project will up to be HKD 13,000 to HKD 14,000. It is estimated the selling and excitation of commercial building effect will warm up the transaction of commercial building in the district. The price of above project is still in low level, plus with its ownership is concentrated, so it is quite attractive for investors.
