Causeway Bay: The Golden District

Causeway Bay

Mid-Levels has some of the most luxurious properties in the city, and Central is to a handful of fancy buildings, so where can you find a wealth of commercial properties? Causeway Bay. Years ago, a 600-square-foot shopfront on Russell Street was dubbed the “King of Shops”, not because of its size, but because its monthly rent of HK$1.44 million, or HK$2,333 per square foot, which set a new record for the most valuable commercial property in Hong Kong at the time. However, a weakened retail market ended the heyday for the landlords in the retail district as shops could no longer afford the rent. Just last month, the asking rent of the same shop on Russell Street was around HK$700,000 per month, about half of what it used to be.

However, as the retail market enters a down cycle, Causeway Bay's secondary residential property market remains robust. Meanwhile, sales for retail and industrial properties have seen a steady climb, which boosts market confidence. James Ho, assistant district manager of Ricacorp Properties, says: “Causeway Bay has a lot of 40-plus-year-old buildings with large units, high efficiency rate and excellent quality, plus the area is located in the heart of Hong Kong. Therefore homeowners can hold their properties with confidence.” This explains why Causeway Bay real estate boasts good downturn resistance. On the other hand, with dining outlets, entertainment venues, and art and cultural spaces aplenty, it is an ideal neighbourhood for expat families to experience the vibrant allure of Hong Kong. In addition, its round up of top-notch schools and proximity to Victoria Park also contribute to the consistently high market demand.

As Hong Kong’s high-end retail market has been climbing out of its slump, a 467,000-square-foot new commercial tower (Lee Garden Three) was completed at the end of last year, the hotel business continues to thrive (Rosedale Hotel was successfully repurchased), and at the same time, an array of serviced apartments have emerged; Causeway Bay is expected to get even busier in the near future.

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Selected Properties

Yee On Building

Located on 26 East Point Road, Yee On Building is a 45-year-old, 26-floor standalone building with 204 units and saleable areas ranging from 465 to 555 square feet. Ho tells us that a high-level C unit, with a saleable area of 555 square foot, was sold at HK$8 million last December.

Pearl City Mansion

Pearl City Mansion is located on 22-36 Paterson Street, on the corner of Paterson Street and Great George Street, and consists of three blocks offering a total of 564 units. Completed in 1970, it mainly features medium-size apartments with saleable areas measuring between 287 to 563 square feet. Ricacorp Properties recently made a sale of Unit A1 on the 13th floor of
Block A which has a saleable area of 558 square feet; it was sold at
HK$8 million, or HK$14,337 per square foot.

Yue King Building

The 46-year-old estate is situated on 1-7 Leighton Road and has 26 floors and 160 units with saleable areas between 580 and 958 square feet. According to Ho, a three-bedroom flat with a saleable area of 678 square feet was sold last December at HK$11.23 million.

Causeway Bay

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