Real estate market
Written by: Cai Weinan
2021-07-06 13:24
The last update date: 2021-07-06 13:32
The section of Wong Nai Chung Road in Happy Valley is far away from the busy area of Causeway Bay. Shops merchants take mid-to-high-end routes, not focusing on people's livelihood consumption, and the price of lower shops in the epidemic city lacks support.
In the past six months, three consecutive losses have been recorded in the section of Wong Nai Chung Road. A recent sale of a floor rented by a furniture store changed hands for 62.5 million yuan. The original business has been in charge of the goods for six years. The actual loss of hands exceeded 17 million. The transfer amount is sufficient to purchase two-bedroom residential units in the area.
Wong Nai Chung Road recorded three losses in a row in half a year
According to information from the Land Registry, Shop B on the ground floor of Cuijing Building, 55 Wong Nai Chung Road, located near the entrance of Blue Pool Road, was sold for 62.5 million yuan on the 4th of last month.
The original owner purchased the above-mentioned shop for RMB 72.36 million in February 2015. Based on the new transaction price, the book value of this change was RMB 9.86 million, which depreciated by 13.6% during the period.
Shop B (the shop on the right) on the ground floor of Tsui King Building, 55 Wong Nai Chung Road, was sold for $62.5 million, a 13.6% decrease in book value.
(Online picture)
If you take into account the tax payment of 6.1513 million yuan when buying the shop and the agency commission for the two transactions totaling 1.348 million yuan, it is estimated that the seller's actual loss is about 17.36 million yuan.
The above-mentioned shop has an area of about 2,000 square feet, and the new transaction price is about RMB 31,250 per square foot. The shop is now leased by a furniture store.
With reference to individual single buildings in the area, such as Wah Chui Terrace and Jun Ma Court, the recent asking prices of two-bedroom units ranged from 13.80 million to 17 million yuan. That is to say, the loss of the above-mentioned shops is enough to buy an additional group of residential units in the area. Rent collection or own use.
In fact, in recent years, many shops connected to Wong Nai Chung Road have been eroded. For example, Shop B, G/F, No. 67-69 Wong Nai Chung Road, with an area of about 4,300 square feet, is also rented by a high-end furniture store. When the original owner sold it at RMB 77 million in 2010, the book value was lost by RMB 8 million, depreciating by 10%.
In addition, Shop No. 2, G/F, 51 Wong Nai Chung Road, was sold for approximately RMB 39 million in December last year. Although it was slightly higher than the purchase price of RMB 38 million in 2015, it is estimated that it still needs to lose more than RMB 2 million after taking into account miscellaneous expenses. yuan.
Individual merchants' style "old pie" is difficult to attract people
Li Genxing, founder and CEO of Shenghui Store Fund, pointed out that the stores in Happy Valley have always been positioned as "expensive and high-end", but in recent years, there have been no large-scale new buildings completed in the area. The population in the area is gradually aging and the overall economic environment is deteriorating. Residents in the outer districts seldom go to the district for consumption, the flow of people is insufficient, and the value of shops has fallen.
He pointed out that many merchants on Wong Nai Chung Road are high-end furniture stores or lighting stores, and their products tend to be European style. They are bluntly "old cakes" and the whole street is not attractive.
He continued to point out that after the free-travel effect weakened in 2016, the inner shop market in the Happy Marathon area has begun to decline, and there has been a loss in the past year. He bluntly said that he has rarely touched shops in the area in recent years.
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