Meet Hong Kong's New Centrals



Posted by Ed 6 yrs ago


OffThePeak 6 yrs ago

Improvements coming, as Hysan plans to redevelop Sunning Court and Sunning Place

Hysan in big revamp at Causeway Bay


Hysan Development Co (0014) is redeveloping commercial block Sunning Plaza and residential project Sunning Court, in Causeway Bay, into a single mixed-use office and retail complex.

This is the first project for the firm after the opening in August of Hysan Place, whose rental earnings so far total HK$431 million.

The redevelopment, which has already started, will boost the current total gross floor area of the two buildings by 25 percent - or 90,000 to 100,000 square feet - upon completion in 2018, deputy chairman and chief executive Lau Siu-chuen said.

Sunning Plaza currently has a gfa of 277,000 sq ft, while Sunning Court has 98,000 sq ft.

. . .

"Occupancy rate of the office area within Hysan Place has risen to 56 percent, from 53 percent as at end-2012," Lau said, adding rent for all retail spaces is set to rise. About 70 percent of customers at Hysan's retail complexes are locals, Lau noted, adding such businesses are therefore unlikely to feel a significant impact if visa rules for mainland visitors are tightened.

The firm's properties include the flagship Lee Gardens, as well as Lee Theatre Plaza, Lee Gardens Two and Leighton Centre - all in Causeway Bay.



OffThePeak 5 yrs ago
(DUPLICATE - for the Record here):

"OFFICE RENTS in Central may fall by 20 per cent with 18 months" - SCMP

Tenants are moving to outlying areas, where rents are up to 50 per cent lower

Some grade A buildings have been vacant for a year, as stubborn landlords refused to cut rents - Up to one million sf of space are unlet in Central.

Some small hedge funds have shut down, and left their spaces

CENTRAL : Estimates of Unlet space:


1998 : 3.4 mn sf

2003 : 2.5 mn sf

2013 : 1.1 mn sf

Causeway Bay and Quarry Bay : Rents are Half to 2/3rds of Central


In Pine St, in TKT, I have seen a big jump in vacant storefronts in the last two months, including now 4 Retail spaces in a row, with one of them having a notice saying the previous tenant would have to forfeit his deposit.

I think if rents fall, then prices will too, since yields had been stated to be only 1-2%, and such low yields are not sustainable when rents are starting to fall IMHO

OffThePeak 5 yrs ago
Office space in prime areas losing its shine - HK Standard

+ Grade-A office market in Central and Admiralty has turned lackluster

+ Co's are more cautious, and new (cheaper) areas have opened up

+ Landlords in Central are offering renewals at flat or 5% down

+ At 3,120 sf unit at No.9 Queens Road was rented at just HK$35 psf,

and that's an amazing 36 percent below recent deals in the immediate vicinity

+ This was the lowest level since 2010

"the plunge in rents is even faster than expected"

- In Aug/Sep Lippo centre was at $40 psf


East Kowloon and Tsuen Wan are offering huge space of 20-30,000 sf at rents which are 80 percent lower than traditional CBD's

In May, China Mobile bought for floors in SHKP's Kowloon Commercial Centre (KCC) for about $1 Billion for space totalling 104,000 sf - that makes:

$9,615 psf (for the best building in Kwai Hing - it looks something like IFC)


OffThePeak 5 yrs ago
Another bit of news today was The Standard's headline story:


"Swire makes its first foray across harbor for offices site"

Swire outbid 16 developers to buy a site in Kowloon East (a new CBD)

Swire paid hK$4,753 buildable sf: $2.64 Billion

Gross Floor area will be: 555,035 sq. ft.

Location : Wang Chiu Rd and Lam Lee St., in Kowloon Bay

Meantime: Wheelock splashed out $4.4 Billion to acquire the Murray Bldg.,

at the foot of the Peak Tram

OffThePeak 5 yrs ago

The property gian beat 16 others for a site in Kowloon Bay that has limits on strata sale and must observe strict environmental standards

So why did they buy it?


+ In the past decade, the total floor area of grade-A office space in Kwun Tong and Kowloon Bay increased 2.5 time to 14 million sq ft.

+ With the coming development of Kai Tak. East Kowloon is poised to be developed into a PREMIER BUSINESS DISTRICT that can provide additional floor area of approx 42 mn. sq ft.

+ Knight Frank estimates that HK will require around 17-21 million sf of additional office space by 2020. We estimate that only 13 million of office space can actually be delivered - leaving a potential shortfall of 4-8 mn sf.

OffThePeak 5 yrs ago
ome is not best as SHKP bets on offices

Karen Chiu

Wednesday, November 13, 2013

Sun Hung Kai Properties (0016) has changed its mind on converting an industrial building in Tsuen Wan into residential property, and will build offices instead.

The world's second largest developer by market value now plans to redevelop the premises on 13-17 Fu Uk Road into two blocks - standing just across the Primrose Hill residential project of Kerry Properties (0683).

Through its subsidiary Starrylight, SHKP yesterday proposed to the Town Planning Board that it will build two 27-story office buildings on the 13,200 square foot site, to yield a total gross floor area of 125,399 sq ft. A total of 57 car parking spaces will be provided. SHKP executive director Thomas Chan Kui- yuen is the director of Starrylight.

Two years ago, the board approved SHKP's bid to redevelop the concrete batching plant into a 41-story residential complex, providing 136 flats.

But SHKP said the implementation of the plan is proving difficult.

Primrose Hill and Cheung Kong Holdings' (0001) The Rise nearby are also redeveloped home projects.

Also, SHKP said its new proposal presents an improved plan, as the building height will better suit the local skyline and it will also offer job opportunities for those in the neighborhood.

SHKP's move may have been triggered by the sluggish market sentiment. A homeowner sold her flat at SHKP project The Cullinan, near the Kowloon MTR station, for HK$22.3 million, after buying it for HK$25.05 million three years back.


> more:

Lucane01 5 yrs ago
Been to Kwun Tong a few times for business and that places is crawling with office workers. Seems like it used to be a factory district that has since morphed into low-cost but large office spaces. Pretty convenient for travel too given the MTR connections.

OffThePeak 5 yrs ago

Good jobs in nice clean offices within walking distance, will help to oush Rents higher justify property prices.

But, still, I cannot get why anyone would pay the smae price per sf in Kwun Tong (Park Metropolitan, from Sino) as they would pay for a nice modern property* in Olympic station.

I think there is a rather huge difference, in favor of Olympic - it is more open (space-wise), more modern, and more livable. As well as being a short 7 minutes by MTR from Central.

Truly, it does puzzle me. Does anyone have an explanation ?

=== ===

*such as: The Long Beach, Island Harborview, and Park Avenue/ Central Park, which is also by Sino Properties.

punter 5 yrs ago
Surely you're a little biased for West Kowloon OTP. Think of Kwun Tong 10 years from now for example, and maybe you won't be that puzzled.

OffThePeak 5 yrs ago
" you're a little biased for West Kowloon OTP."


But I was biased for West Kowloon BEFORE I moved here. It pressed "all the buttons" for me. So I moved here.

I have looked all around, and cannot find anyplace that makes as much sense (for my own requirements.) Have you been to Kwun Tong? The main problem is the lack of space. How will the gentrification proceed? They are making room for a "new heart" of the area. That's great, and it may work. But I don't want to have to wait 10 years to see if it gells. When for the same sort of money, I can live somewhere that is "gelling before my eyes." 10 years is a long time to wait. The XRL (train to China) will be here in two years.

< Back to main category


Login now