How Jardine Matheson’s street-shop sale reflects Hong Kong retail property’s struggles
Amid Hong Kong’s commercial property downturn, British conglomerate Jardine Matheson has sold a street shop in Causeway Bay for HK$80 million (US$10.2 million) after holding it for more than 50 years, accepting a price HK$10 million below its earlier valuation. The property, a ground-floor shop in H&S Building at 36 Leighton Road, with a gross floor area of about 11,727 square feet, was acquired…
Jardine Matheson's recent sale of a Causeway Bay street shop for HK$80 million reflects the challenges facing Hong Kong's retail property market amid a broader commercial property downturn. The ground-floor shop in H&S Building at 36 Leighton Road, with a gross floor area of about 11,727 square feet, was acquired by Uni Investment Development at a price HK$10 million below its initial valuation.
Despite the lower-than-expected sale price, the transaction is seen as a bargain by some industry experts, who highlight the shop's large floor area and former use as a car showroom. The sale is part of a broader trend of increased activity in the street-shop market, with transaction volume expected to rise in the fourth quarter.
However, the impact of interest rate increases and the presence of distressed properties are expected to keep prices from declining further.
Brief written by urgent.news from South China Morning Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
