Hong Kong, March 28, 2017
– CBRE has been appointed by the owner as the sole agent for the disposal of a G/F retail shop at No.13 King Kwong Street, Happy Valley. The property will be sold on an as-is basis with existing tenancy agreement.
The space has various qualities that make it an optimal size for a variety of businesses, such as a restaurant, bank or pet store. It is suitable for both end users and investors. The shop is currently leased by a popular Vietnamese restaurant.
The 1,665 sq. ft. shop has a cockloft, high floor efficiency ratio of 97% and a 16 ft.-wide frontage. The ceiling height of the front portion of the shop is 17 ft. It is also easily accessible as there is drop off space for cars and a bus station in front.
Located on the busiest street in Happy Valley, the retail shop benefits from the foot traffic from surrounding mid-to-high end restaurants and live entertainment venues. The area also boasts high demand from the neighboring primary schools, mid- to-high end residential properties and two renowned hospitals - The Hong Kong Sanatorium & Hospital and Hong Kong Adventist Hospital.
“While there has been a significant drop in rents in first-tier retail areas over the past few years, the retail rent in residential neighborhoods have remained relatively stable. This has made shops in non-core areas very appealing to retail investors.” said Freddy Wan, Director, Capital Markets, CBRE Hong Kong.
“With reference to recent retail shop transactions in Happy Valley, the average unit price in the area has exceeded HK$41,000 per sq. ft. (saleable area),” Wan continued. “A shop on No.1 Yuen Yuen Street was sold at approximately HK$52,885 per sq. ft. The average rental income of surrounding retail shops ranges from HK$100-186 per sq. ft. (saleable). The expected yield of the shop, based on current market rent, should be not lower than 4%. With more residential projects in the pipeline, the retail rent in Happy Valley has strong potential to rise.”
For more details, please contact Freddy Wan, Director, Capital Markets, CBRE Hong Kong at (852) 9414 4462.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.