First Hong Kong CBD Land Listing In 20 Years May Result In $2.2B Parking Garage Sale
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Hong Kong's government is selling a 31k SF tract in the city's CBD, the first commercial land made available since 1996.
The site on Murray Road, Central, currently houses a parking garage, and experts project the land could fetch a good price given the lack of new supply and very low office vacancy in Central Hong Kong. The site is valued at HK$15.8B to HK$17B, or up to $2.2B USD, Bloomberg reports.
Vincent Cheung and Bloomberg Intelligence analyst Patrick Wong said the price and the garage's rent will set "a new indicator" for Central office product when it trades in Q1 '17, spurring demand for nearby office properties and raising the price tag for other transactions.
And that's saying a lot, because Hong Kong's had some record-breaking office deals lately, particularly from Chinese investors. HarbourGate East Tower traded for HK$4.5B in July, and China Evergrande Group and China Life Insurance Co bought office blocks totaling HK$18.35B in 2015. [Bloomberg]