North Point Shop Sold at Record Low HKD2,282 psf, Cheaper Than Industrial Units
SingTao · 1 SOURCESabout 3 hours ago5 MIN
Summary
A shop unit at Siu Nin Building on Sai Wan Terrace in North Point has been sold for an astonishingly low price of HK$13.8 million, works out to only HK$2,282 per sq ft. The deal has shocked the local property market, with agents reporting prospective buyers immediately demanding price reductions from other vendors. Industry insiders have identified three main reasons behind this "unbelievable" price point.
Key Points
- The property at Siu Nin Building (30-36 Sai Wan Terrace) spans over 6,000 sq ft, comprising high-level ground floor (UG) units A, B, C and 1st floor units A and B
- The transaction price was HK$13.8 million, translating to approximately HK$2,282 per sq ft on building area—a price lower than typical industrial buildings
- The buyer is investor Chan Hung-kai (陳洪楷), who said the property "will purely be used for rental income" with expected yields of 7.8% to nearly 10%
- Current rental income includes nearly HK$50,000 per month from an elderly care home on the 2nd floor, with the ground floor listed at an indicative rent of HK$20 per sq ft
- Industry experts cite three main reasons for the low price: misleading "high-level ground floor" description, limited tenant pool due to low usability rate of about 60%, and the 40-year-old building developed by Siu On Property in 1986
Why It Matters
This unprecedented low price per sq ft for a shop unit signals a potential shift in how the market values non-ground-floor commercial properties, potentially prompting re-evaluation of similar "misleading description" properties across Hong Kong. The strong rental yield of nearly 10% achieved through careful tenant mix could spark renewed investor interest in alternative commercial property strategies as traditional retail continues to face challenges .
This unprecedented low price per sq ft for a shop unit signals a potential shift in how the market values non-ground-floor commercial properties, potentially prompting re-evaluation of similar "misleading description" properties across Hong Kong. The strong rental yield of nearly 10% achieved through careful tenant mix could spark renewed investor interest in alternative commercial property strategies as traditional retail continues to face challenges .