Elevator Company Upgrades to Larger Chai Wan Premises, Taking HK$7.2M Loss After 9-Year Hold
SingTao · 1 SOURCESabout 2 hours ago4 MIN
Summary
Taiwan-Japan Elevator Hong Kong Co Ltd has purchased three interconnected units at Chai Wan's Fat Tat Centre for HK$13.8 million, in a deal that highlights ongoing weakness in Hong Kong's commercial property market. The seller, who acquired the combined 4,158 sq ft space in March 2017 for HK$21 million, sustained a paper loss of HK$7.2 million over the nine-year holding period. The buyer is executing a strategic "small-to-large" relocation to accommodate growing elevator service demand.
Key Points
- The property at Fat Tat Centre Units 24A, B and C spans 4,158 sq ft (1,109, 1,300 and 1,749 sq ft respectively), sold at HK$3,319 per sq ft
- Original owner purchased in March 2017 for HK$21 million; current sale represents a 34% value decline and HK$7.2 million loss
- Buyer Taiwan-Japan Elevator Hong Kong Co Ltd currently occupies 1,185 sq ft at Chai Wan Industrial City Phase 1, Room 2 on 11th floor
- General manager Cheung Yan (張欽) originally acquired the existing premises during the market trough in April 2000 for HK$595,000
- Peak prices at Fat Tat Centre during 2019-2023 boom period exceeded HK$5,500 per sq ft; current transaction reflects a 40% decline from those levels
Why It Matters
This transaction illustrates how Hong Kong's commercial property market continues to adjust from post-pandemic realities, with long-term holders accepting significant losses to facilitate corporate expansion moves. The elevator company's decision to upgrade during a market downturn signals confidence in sector growth despite broader economic headwinds, while the seller's nine-year holding period and 34% depreciation underscores the depth of the commercial property correction in secondary industrial locations.
This transaction illustrates how Hong Kong's commercial property market continues to adjust from post-pandemic realities, with long-term holders accepting significant losses to facilitate corporate expansion moves. The elevator company's decision to upgrade during a market downturn signals confidence in sector growth despite broader economic headwinds, while the seller's nine-year holding period and 34% depreciation underscores the depth of the commercial property correction in secondary industrial locations.