A US government-owned property in Hong Kong might sell for a big discount

Demand is way down for luxury properties in Hong Kong

TRD New York TRD WEEKEND EDITION /
Jun.June 07, 2020 12:00 PM
The apartment complex (CBRE)

The apartment complex (CBRE)

A prime parcel in Hong Kong owned by the U.S. State Department could sell at a much lower price point than asking prices in the neighborhood just a couple years ago.

Luxury residential pricing in Hong Kong has fallen over the last year or so because of last year’s civic unrest in the territory and the coronavirus pandemic.

Experts expect bids for the 95,000-square-foot State Department property at 37 Shouson Hill Road to be as low as $400 million, about 24 percent lower than the price developer China Resources Land paid per square foot for a comparable neighboring property in 2018.

The State Department is selling the property as part of a global reinvestment push, according to a State Department spokesperson. The U.S. houses consulate staff in the apartment complex on the property. CBRE is marketing the property.

The coronavirus pandemic has brought the Hong Kong market to a near standstill compared to past years. Luxury rents fell 10 percent year-over-year in the first quarter and transaction volume fell 44 percent in that period.

London-based brokerage Savills pins that mostly on decreased demand from mainland China. Residential investment and leasing deals from mainland Chinese buyers and renters fell 80 percent year-over-year in the first quarter of 2020.

Retail rents are also in a free fall. Rents are at their lowest point since 2009 in one of Hong Kong’s most desirable retail districts. [Mingtiandi] — Dennis Lynch


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo (Getty, iStock)

Eviction moratorium extended until September

Eviction moratorium extended until September
JLL CEO Christian Ulbrich (Ulbrich by Jemal Countess/Getty Images for Women's Forum of New York)

JLL profits halved by pandemic

JLL profits halved by pandemic
For the first time since the start of the coronavirus crisis, the percentage of CMBS loans that are more than a month behind on payments has gone down. (iStock)

TRD Insights: CMBS delinquencies decline as borrowers get relief

TRD Insights: CMBS delinquencies decline as borrowers get relief
Chief Justice Tani Cantil-Sakauye (UCDavis, iStock)

California eviction and foreclosure ban could end Aug. 14

California eviction and foreclosure ban could end Aug. 14
Quarters CEO Rui Barros and 251 DeKalb Avenue in Brooklyn (Credit: Linkedin and Google Maps)

“Schoolyard-style” dispute between landlord and co-living firm

“Schoolyard-style” dispute between landlord and co-living firm
Matthew Kramer, Victor Petrescu, Sebastian Jaramillo and Gov. Ron DeSantis (Getty, iStock) 

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases
(iStock)

“We’re seeing more militant direct action:” Tenant groups fight evictions with power drills and other tools

“We’re seeing more militant direct action:” Tenant groups fight evictions with power drills and other tools
Hotelier Monty Bennett and Marriott Beverly Hills (Bennett via Ashford Inc.; Marriott via Booking)

SEC opens investigation into hotelier Monty Bennett’s companies

SEC opens investigation into hotelier Monty Bennett’s companies
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...