57-Year-Old Sheung Wan Tenement Sells for HK$27M, 380x Original Cost
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
A historic "mini" tenement building in Sheung Wan has changed hands for HK$27 million, representing a staggering 380-fold appreciation from its original purchase price of HK$70,000 in 1969. The six-storey property at 22 Square Street, spanning 3,039 square feet of usable space, was built in 1970 and is expected to be converted into student housing to meet surging demand in the area. Industry observers note the transaction underscores the lucrative potential of ageing tong lau buildings in Hong Kong's prime urban districts. Separately, Hang Hing Hong, a ginseng and dried seafood shop that had operated from the same neighbourhood for 66 years, sold its combined premises for HK$58 million, earning a profit of HK$51.9 million.
Key Points
- The property at 22 Square Street sold for HK$27 million (HK$8,885 per sq ft), purchased by the original owner in 1969 for just HK$70,000
- Lee Kan-shing, founder of Sun Hung Kai Commercial Fund, noted that Square Street's quiet environment and proximity to a coffin shop makes conventional retail challenging, but its central location makes it ideal for student housing
- Square Street derives its name from a 19th-century mistranslation—the English "Square" originally referred to an open market plaza (now part of Pottinger Street Garden), but a translator erroneously rendered it as a geometric shape
- The street, actually an L-shaped slope with stone steps, connects Hollywood Road, Ladder Street, Kueng Fu Lane and Po Hing Lane, now forming part of the vibrant PoHo arts district
- Hang Hing Hong sold its flagship at 19 Ko Shing Street (7,484 sq ft, HK$43 million) and adjacent shop at 17 Ko Shing Street (1,500 sq ft, HK$15 million), originally purchased for a combined HK$6.1 million in 1978 and 1986
Why It Matters
The transaction highlights how older tong lau buildings in established urban neighbourhoods can deliver extraordinary returns for long-term holders, while also demonstrating the growing commercial viability of converting heritage properties into student accommodation amid Hong Kong's tight housing market. The sale of Hang Hing Hong's premises also signals ongoing generational shifts in traditional family-run businesses occupying prime street-level locations in Central and Sheung Wan.
The transaction highlights how older tong lau buildings in established urban neighbourhoods can deliver extraordinary returns for long-term holders, while also demonstrating the growing commercial viability of converting heritage properties into student accommodation amid Hong Kong's tight housing market. The sale of Hang Hing Hong's premises also signals ongoing generational shifts in traditional family-run businesses occupying prime street-level locations in Central and Sheung Wan.