Tsim Sha Tsui East Office Sold at 40% Below Peak
SingTao · 1 SOURCESabout 2 hours ago5 MIN
Summary
A major office transaction has been recorded at Grand Centre (康宏廣場) in Tsim Sha Tsui East, where 11 units on the 27th floor were sold for HK$166.05 million. The deal covered about 16,605 square feet, translating into a price of HK$10,000 per square foot, more than 40% below peak levels seen in 2018 and 2019. The purchaser is a local end-user already based in the same district, relocating from Railway Plaza on Chatham Road South as part of an office upgrade and consolidation plan. The seller, a Singapore consortium that had assembled the units over time, still booked a paper gain on the disposal
Key Points
- The transaction involved Units 3 to 13 on the 27th floor of Grand Centre, a so-called “phoenix floor” directly below the top floor, totaling about 16,605 square feet
- The consideration was HK$166.05 million, equal to exactly HK$10,000 per square foot, compared with about HK$18,000 per square foot for similar high-floor sea-view units at the market peak
- The buyer is a local occupier currently using two full floors in Railway Plaza on Chatham Road South, with combined space of about 21,700 square feet
- Although the new premises are slightly smaller in gross area, the move allows operations to be consolidated onto one floor, improving efficiency and office coordination
- According to Centaline (Commercial) senior regional sales director Mak Wai-cheung, Grand Centre offers stronger grade-A positioning, about 71% efficiency, sea views and its own car park, versus roughly 61% efficiency at Railway Plaza
Why It Matters
The deal shows how the correction in Hong Kong office prices is creating opportunities for financially stronger occupiers to upgrade premises rather than simply expand space. It also suggests that building quality, floorplate efficiency and operational convenience are becoming more important in user decisions when prices have fallen sharply from prior highs