Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Prime Hong Kong retail property goes up for sale, as long-term investors look to cut their losses

Prime Hong Kong retail property goes up for sale, as long-term investors look to cut their losses

An entire block on Hennessy Road has been listed for sale for the first time since 2009. Hong Kong’s retail market might see structural shift after years of success supported by mainland Chinese spending: Savills

For the first time in more than a decade, prime commercial real estate is back on Hong Kong’s market, with an entire building block offered for sale in the world’s most expensive retail district as long-term property investors anticipate a further decline in the city’s commercial property sector.

Hong Kong’s retail sector has been hit hard, first by months of anti-government protests, and then the coronavirus pandemic. The city’s economy suffered its worst contraction on record in the first quarter of this year, slumping by 8.9 per cent year on year.

As a result, an entire block has been listed for sale near the Sogo department store in Causeway Bay. The six storey building on Hennessy Road, on the market for HK$1 billion (US$130 million), is currently occupied by Swiss luxury watchmaker Breitling and Hong Kong jeweller Tse Sui Luen. It has a gross floor area of 10,000 sq ft and can be redeveloped into a new commercial building with a gross floor area of 300,000 sq ft.



It is the first whole building on Hennessy Road to be offered for sale since 2009, when Angela Leung, Macau gaming tycoon Stanley Ho’s fourth wife, bought Continental Diamond Plaza, the block next to Sogo, for HK$838 million, or HK$18,300 per square foot. The building is jointly owned by Thomas Lee Tse-ven’s family, which owns Hong Kong musical instrument retailer Tom Lee Music, and a family office from the Philippines.

“Very few properties change hands on this strip of Hennessy Road due to its incredibly prestigious location,” said Reeves Yan, head of capital markets in Hong Kong for CBRE, which is the sole agent for the sale. “And the price is negotiable.”

In March, an entire floor in the Shun Pont Commercial Building was put on the market for HK$35 million. The building is located in Wan Chai, a block away from Hennessy Road. “The 3,564 sq ft space is going for 15 per cent less than the original asking price, after the owner saw that the number of transactions had dropped sharply recently,” said James Mak, district sales director at Midland Commercial.

The number of transactions has indeed dropped – only 20 commercial real estate deals were recorded in the first quarter, according to CBRE. These deals brought in a total of HK$7.5 billion, the second lowest figure since 2009.

“Retail [property] investment has been paused, not only because of the current situation, but also because the retail market might be about to undergo another structural shift after enjoying years of success supported by mainland Chinese spending,” said Simon Smith, a senior director at Savills.

“The market has been very quiet recently, and the potential investors we talk to now may only enter the market if they can see reasonable rent yield. With a sharp fall in retail rents, sellers will have to slash their asking prices.”

About 10,400 retail sector workers are expected to lose their jobs and at least 5,200 stores are expected to shut by the end of May, the Hong Kong Retail Management Association said. The industry body said more stores could shut later in the year.

“The owners of commercial property are obviously uncertain about the future, and intend to cut their loses right now,” said Vincent Cheung, managing director of Vincorn Consulting and Appraisal. Just as in gambling, “you would prefer to cut your losses when you are not feeling confident about winning” any longer, he added.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
×