International real estate consultancy Savills has been appointed the sales and marketing agent for the sale of 21/F of the Seaview Centre in Kwun Tong. The property has an indicative price of HK$7,500 per sq ft. The rooftop billboard provides a unique advertising opportunity in the area.
International real estate consultancy Savills has been appointed the sales and marketing agent for the sale of 21/F of the Seaview Centre in Kwun Tong. The property has an indicative price of HK$7,500 per sq ft. The rooftop billboard provides a unique advertising opportunity in the area.
The captioned property is located in the Seaview Centre, Hoi Bun Road. Kwun Tong with a floor area of 10,941sq ft, including a 672 sq ft. The rooftop houses a large billboard, which presents a huge advertising opportunity. The land premium paid for this property covers it being used as permanent office spaces; the price per sq ft is 30% lower than other office buildings in the area. The rent in market value lies between HK$22 and HK$23 per sq ft, and the expected return is 4%.
Recently, the Link and Nan Fung successfully bid for commercial land on Hoi Bun Road in Kwun Tong. The floor price per sq ft reached HK$6,300; this had a positive effect on the investment atmosphere in Kowloon East.
With reference to the latest transactions involving Billion and Sun Hung Kai office buildings nearby - several mainland listed corporations bought One Harbour Square at the transaction price of HK$15,200 per sq ft. Other properties in the area like the MG Tower, 56 Tsun Yip Street, Elite Centre and Legend Tower have a selling price of over HK$10,000 per sq ft.
James Siu, Head of Kowloon Industrial and Commercial Sales, Savills said, ‘Since the Development Bureau promoted the development of Kowloon East, attention from investors has be drawn to the area. The development combined with the opening of the cruise terminal and the further discussion on the monorail concept, has made industrial buildings in Kwun Tong a lot more attractive to investors. With the resources provided by the government, Kwun Tong has transformed from purely being an industrial area into a core commercial and tourism area. Developers, who have benefited from these projects, continue to invest resources into redeveloping the area in order to bring in more commercial activities. This continues to greatly improve the whole environment. Hotels and offices have been completed in quick succession, resulting in the whole environment has improving dramatically. All these factors combined with the existing excellent transport network, has enhanced the attractiveness of the area drastically.’
Take Hoi Bun Road as an example, although there has been significant increase in the number of new office buildings in the area in recent years, the absorption rate remains at a high level and the price per sq ft continues to increase. Citibank and Manulife, for example, each bought a block of One Bay East to house their headquarters. This shows that there will be a high demand for office buildings in Kowloon East in the future.