International real estate firm Savills has been appointed as the sole agent for the sale of No. 76 Shantung Street, Kowloon ("the Property"). The Property has a total gross floor area of approximately 17,060 square feet and to be sold with existing tenancies, with 100% occupancy currently achieved.
The Property is a 22-storey building with a rooftop. The G/F to 2/F are designated for lobby and retail use, while 5/F to 22/F comprise residential units. Featuring a one-unit-per-floor layout, the residential portion offers an average saleable area of approximately 461 square feet per unit and has been successfully repositioned as a student accommodation.
Strategically located in the heart of Mong Kok, the residential units enjoy open views overlooking MacPherson Playground. The surrounding neighbourhood benefits from a well-established mix of commercial and community amenities, with an abundance of retail shops and food-and-beverage outlets generating strong pedestrian traffic throughout the day.
The Property is within just a few minutes’ walk of both Mong Kok Station and Mong Kok East Station, providing excellent connectivity to Hong Kong Island, Kowloon and the New Territories, as well as convenient access to major tertiary institutions across the city. Its prime location and accessibility make it highly attractive to both local and international students.
Mr. Jason Wo, Senior Director, Investment at Savills Hong Kong said, “The Property is valued at approximately HKD 220 million to HKD 260 million. The residential portion has been upgraded and converted into student accommodation. The purchaser can enjoy a rental yield of over 4%.
In recent years, demand for student accommodation in Hong Kong has continued to grow steadily. However, the supply of properties suitable for conversion into or development as student housing in the core areas of Yau Tsim Mong remains extremely limited, enhancing the investment appeal of such assets.
The Property was redeveloped into a residential building in 2010 and represents a rare opportunity to acquire a quality, whole-building residential investment asset in the market. The entire building has previously been leased to students from Hong Kong Metropolitan University and The Hong Kong Polytechnic University, demonstrating its strong operational potential as student accommodation. Unlike hotel assets, residential properties offer greater flexibility. In the future, the residential portion and the three retail floors can be sold separately, providing additional exit options for investors. This type of asset offers considerable flexibility, allowing purchasers to pursue either a long-term income-generating strategy or a medium-term value-add investment approach.”