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Written by: Commentary Editing Room
2020-08-12 06:30
Last update date: 2020-08-12 06:30"Subscribed" can be described as a common method of property investment today. Whether it is residential buildings, commercial buildings, shopping malls, or industrial buildings, almost as long as it is covered by tiles, it can be subdivided for rent. Recently, there was a rare auction of "subdivided housing" in an industrial building in Tsuen Wan. After an investor purchased an industrial unit, it was divided into 33 small households with an area ranging from 71 to 109 square feet. Some units are now being sold for sale with an asking price of 255,000 to 370,000. The average price per square foot is RMB 3,500, and one of the units is sold with a lease. The unit has an area of 101 square feet and a monthly lease of approximately RMB 1,500. Taking the unit price of 345,000 yuan as an example, the rate of return is about 5%.
Emerging sub-houses are in crisis
In recent years, it has become more and more popular for industrial building units to be divided into small units for rent. The sub-divided rooms are equipped with independent mailboxes and electric meters, and have shared toilets and shower rooms. The owners will also hire cleaning companies to keep the overall unit clean and tidy. The tenant can use it for office, storage room, etc., or even let the tenant use it for accommodation. Take the above example as an example. Although the local agent emphasized that the studio concerned cannot be used as a residence, it also stated that it would not rule out buyers who took a rest after working all night in the room. This shows that there is a gray area in the unit. However, it is precisely because of the dual-use situation of "working and living" that makes it difficult to convict the illegal use of industrial buildings, so this type of subdivided housing can have a certain market.
In fact, the division of industrial units is nothing new. Since the industry moved to the north, the vacancy rate of industrial buildings in Hong Kong has continued to rise. However, due to its wide space and reasonable rent, it has attracted a variety of non-traditional industrial activities, such as mini storage, art studios, band rehearsal rooms, Many uses such as restaurants and residential buildings that clearly violate land leases (that is, non-industrial uses) are easily found in industrial buildings. However, these activities are not like traditional industries, and the space required is ultimately limited. Therefore, the landlord tends to "sub-letting". In the past decade or so, the prices and rents of different properties in Hong Kong have continued to rise, directly increasing the economic pressure on industrial tenants, thereby reducing space demand. At the same time, more groups with limited rent-paying capacity have been squeezed out of the normal market (such as one-person companies, oblique companies). In addition to bar workers, etc., they are stationed in industrial buildings in search of more affordable space. Some speculators have spotted the market for those with limited rent-paying capacity but who need a certain amount of space, and rented out industrial building units into multiple small units to maximize rent per square foot.
The use of industrial buildings is constantly changing, and even people are living in them. The situation is already quite dangerous. After all, industrial activities involve many hazardous materials or chemical processes. The environment is definitely not suitable for living, not to mention that industrial buildings are the most affordable rental space in Hong Kong. The wide range of uses also adds a lot of variables to the industrial building as a living environment. Just as the society did not realize the dangers in the mini-storage in the early years, allowing its operation to cause frequent accidents, it can be seen that the industrial building environment is perilous. However, in recent years, this "one opening dozens of" partitioning method has reduced the dangers of the entire industrial building to individual units. In this highly dense environment, a slight difference is already dangerous, not to mention Said that the tenant is living in the "workshop". Needless to say, many landlords have different sub-leasing methods and quality, and the unit structure and fire safety are doubtful. The situation is definitely worrying.
Regulation requires wisdom
Industrial buildings are in crisis everywhere, and the government should consider making more stringent regulations, especially for the sub-districts of industrial buildings used as accommodation in Xiazhong. At the same time, the government must not ignore the space of industrial buildings as the only remaining and relatively affordable space in Hong Kong. Whether it is a severe crackdown or strict building and fire protection regulations, it will always endanger the living space of many communities and economic activities. . For example, if the grassroots loses the housing option of an industrial building, and at any time it will be downgraded to other worse and illegal housing environments. The problem cannot be solved. Therefore, the relevant regulations must be considered in the long term. The fundamental solution is to correct the distorted housing and property market in Hong Kong. It is necessary to increase the supply of various types of housing and implement rent control. However, in the short term, the government must step up inspections of the environment of industrial buildings, especially for the above-mentioned emerging subdivided housing models. Even if the activities in the subdivided housing cannot be regulated, at least the construction and fire safety outside the subdivided housing must be protected.
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Industrial Building Market, Industrial Building Demolition and Sale of Subdivided Housing 01 Viewpoints