More investors are selling their investment properties in Hong Kong’s key business districts amid a prolonged slump in the commercial real estate market, despite government measures to spark a revival over the past year.
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Private companies linked to Chan Hoi-wan, the 45 year old CEO of Chinese Estates Holdings and her sister Chan Sze-wan, sold two shops in Wan Chai for HK$130 million (US$16.7 million) on March 18, according to property agents. The buyers were not identified. The asking price was HK$140 million, some local media reported.
The sisters bought the two ground-floor shops measuring 3,337 sq ft and 4,773 sq ft in 2010 for HK$50 million and HK$70 million, respectively, through their private vehicles Glory City Limited and Rich Force Limited, according to Land Registry data. The shops were rented out for HK$465,000 per month, records showed.
While there is no immediate sale comparison, capital values of retail properties in Wan Chai have depreciated by 10-15 per cent over the past year, according to an estimate by property consultancy JLL.
A gauge of private retail properties compiled by the Rating and Valuation Department has slumped nearly 30 per cent since July 2022. Since the market peaked in November 2018, prices had declined by 37 per cent as of the end of last year, according to data compiled by the department.
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