Wing Lun Group Sells Jordan Property at Steep 67% Loss in Four Years
SingTao · 1 SOURCESabout 3 hours ago2 MIN
Summary
Wing Lun Group has completed the sale of a commercial-residential building at Nathan Road 315 in Jordan for HK$155 million, representing a paper loss of approximately 67 percent from its purchase price four years ago . The transaction involves a property spanning about 24,338 square feet, translating to merely HK$6,369 per square foot — described as a fire-sale price for prime urban real estate . The seller's decision to accept such a steep loss reflects the combined pressures of high interest rates and a struggling commercial property market in Hong Kong .
Key Points
- Wing Lun Group sold the 12-story commercial-residential building at Nathan Road 315, Jordan, for HK$155 million, a 67 percent decline from its HK$463 million purchase price in July 2022
- The property's sale price equates to approximately HK$6,369 per square foot for the 24,338-square-foot floor area, significantly below market rates for core district properties
- In 2018, Wing Lun Group first acquired the adjacent Jin Han Building at Nathan Road 317-321, a 12-story structure with over 87,000 square feet of total gross floor area
- The group combined both properties into a single site exceeding 10,000 square feet, with combined gross floor area surpassing 110,000 square feet, and attempted to market them together for HK$818 million in August 2024
- The property is conveniently located within a one-minute walk of Jordan MTR station and benefits from proximity to the West Kowloon High Speed Rail Terminal and Temple Street
Why It Matters
The sale highlights how the prolonged high interest rate environment has squeezed property developers who accumulated assets during the low-rate era, forcing fire sales even in prime locations . For Hong Kong investors and developers, the transaction signals that no asset is immune to valuation corrections when financing costs remain elevated and buyer sentiment stays subdued .
The sale highlights how the prolonged high interest rate environment has squeezed property developers who accumulated assets during the low-rate era, forcing fire sales even in prime locations . For Hong Kong investors and developers, the transaction signals that no asset is immune to valuation corrections when financing costs remain elevated and buyer sentiment stays subdued .