Bakery Operator Shifts from Renting to Buying, Purchases Wong Chuk Hang Industrial Unit at HK$2,800+ Per Sq Ft
On.cc · 1 SOURCESabout 3 hours ago2 MIN
Summary
A local bakery operator has acquired a 4,089 square-foot industrial unit in Wong Chuk Hang for approximately HK$11.58 million, marking a transition from renting to owning. The deal was struck at about HK$2,832 per square foot, representing a significant discount compared to current asking prices in the building. The South Island Line and ongoing transformation of the Wong Chuk Hang area have made industrial properties increasingly attractive to end-users.
Key Points
- The property is Units A and B on the 2nd floor of Delux Industrial Building at 49-51 Wong Chuk Hang Road, with a total saleable area of 4,089 square feet
- The buyer is a bakery operator previously renting industrial premises in the same area, deciding to purchase to reduce operating costs amid attractive price levels
- The original owners purchased the units in 1991 and 2000 at approximately HK$745 and HK$471 per square foot respectively, with a combined acquisition cost of about HK$2.53 million
- Current asking prices in Delux Industrial Building range from HK$4,000 to HK$6,000 per square foot across approximately 20 available units
- A comparable transaction in June 2024 for Unit F on the 7th floor (2,221 square feet) was recorded at approximately HK$2,782 per square foot
Why It Matters
The transaction reflects how attractive industrial property prices have become in Wong Chuk Hang, prompting tenants to become owners to lock in lower occupancy costs. This shift could signal broader market sentiment, with end-users increasingly viewing current price levels as a strategic entry point amid the area's improving infrastructure and commercial ecosystem driven by the South Island Line .
The transaction reflects how attractive industrial property prices have become in Wong Chuk Hang, prompting tenants to become owners to lock in lower occupancy costs. This shift could signal broader market sentiment, with end-users increasingly viewing current price levels as a strategic entry point amid the area's improving infrastructure and commercial ecosystem driven by the South Island Line .