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WeWork will shut eight floors of co-working space in Causeway Bay, shrinking its Hong Kong footprint by half as social distancing, work-from-home arrangements crimp demand

WeWork will give up 90,000 square feet of space over eight floors at Tower 535 at Jaffe Road in Causeway Bay, according to people familiar with the matter.

The company may incur a penalty for breaking its lease, which ends in 2025, people said.

WeWork, the US real estate company that spearheaded the popularity of co-working space, will shrink its property footprint in Hong Kong by more than half, as more people are working from home under social-distancing restrictions during the Covid-19 pandemic.

The company will abandon 90,000 square feet (8,361 square metres) of space across eight floors at Tower 535 in Causeway Bay, reducing its portfolio in Hong Kong by 56 per cent to 360,000 square feet, according to people familiar with the matter. WeWork, which chose Tower 535 as its very first Hong Kong location in 2016, may incur a penalty as its termination is a breach of its tenancy agreement until 2025 with its landlord Phoenix Property Investors, the people said.

A person who answered the phone at WeWork’s office space in Kwun Tong confirmed that the Tower 535 office will close effective April 1, declining to elaborate. The company and Phoenix Property did not immediately respond to queries by South China Morning Post.

WeWork operated co-working space from the 11th to the 20th floor at Tower 535 on Jaffe Road in Causeway Bay, a short walk from Hong Kong’s Victoria Park. During a visit to the 11th and 20th floors, workers were seen clearing cables, removing furniture and the coffee machine from the space.

At its peak in 2019, WeWork operated 830,000 square feet of co-working space in Hong Kong. The city’s market for flexible space was booming between 2016 and 2018, when scores of landlords refurbished and converted their commercial buildings into open working space with amenities to serve demand in the world’s most expensive city.

That boom reached its crest in 2019, and plunged by nearly 20 per cent over the next year, as a combination of anti-government protests and the coronavirus pandemic crimped demand. WeWork itself had to abandon a US$10 billion initial public offering in New York in 2019. At present, WeWork still retains space around Hong Kong, including one floor at Lee Garden One at 33 Hysan Avenue in Causeway Bay, according to its website.

“A drop in the need for flexible space operations such as events, conferences and meeting room subscriptions have put tremendous pressure on co-working operators’ income across the region,” agent said.

Other industry consultants are more upbeat. WeWork’s scale-down is partly due to its difficulties in raising capital and its overexpansion, they said. IWG, the multinational operator of leased offices formerly known as Regus, leased an office floor with 50,300 square feet of gross floor area at The Quayside in Kwun Tong in the past six months, its third facility in Hong Kong.

“Through a flex strategy, occupiers could achieve the flexibility they need to make longer-term decisions at a later date, or continue on with flex in a more formal context,” agent said. “As a result of this growth in flex requirements, some co-working operators continue to expand and seek further opportunities.”

(South China Morning Post)

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Sai Ying Pun flats priced from $6.8m

Regal Hotels International (0078) opened the price list for the first batch of The Queens in Sai Ying Pun, involving 50 units with an average price of HK$30,299 per square foot.

That is nearly 10 percent more expensive than Henderson Land Development's (0012) Two Artlane in the same district, which was launched in September.

The 50 units ranged from 242 sq ft to 431 sq ft. The cheapest flat costs HK$6.88 million.

Meanwhile, mainland developer Centralcon named its Fo Tan residential project The Arles, set to launch soon. It provides 1,335 units ranging from 330 sq ft to 1,500 sq ft.

In in Sha Tin, Sun Hung Kai Properties (0016) will launch St Michel Phase 1 next month.

And in Tai Kok Tsui , CetusSquare Mile will open sales of 20 units on Sunday with minimum price of HK$28,537 per sq ft.

Hong Kong Property said the new flats sales in the first quarter so far jumped about 60 percent from a year ago.

Meanwhile, secondary deals at 10 major estates in March rose 20.3 percent month-on-month to 397, an eight-year high, property agent said. In the first quarter, transactions was up 33.9 percent.

In secondary deals 3,750-sq-ft house in Residence Bel-Air changed hands for HK$240 million, or HK$64,000 per sq ft.

And at Ultima in Ho Man Tin, the owner of a 1,320-sq-ft flat lost HK$1.4 million after selling it for HK$37.8 million.

(The Standard)


首季50甲廈錄36宗買賣 代理:按季升44%























宏安地產與宏安集團昨聯合公布,與物業投資者Chiu Lon Ronald持有的合資企業,以3億購入屯門鄉事會路88號天生樓地下及1樓11個鋪位、以及若干升降機大堂及樓梯等,並指該部分鋪位已租出,以總樓面13858方呎計,平均呎價約21648元。







另一方面,工廈亦錄大手成交,據土地註冊處資料顯示,九龍灣三湘九龍灣貨運中心低層B室,於本月中以1.82億成交,面積5216方呎,呎價約34893元,買家以公司名義登記,為TAI YIP INVESTMENTS NO.1 LIMITED,註冊董事為李姓等人氏,原業主於為森信洋紙有限公司 (SAMSON PAPER COMPANY LIMITED),註冊董事包括岑綺蘭等人,於1990年以4132.8萬購入,持貨31年帳面獲利逾1.4億,期間升值約3.4倍。



京瑞廣場二期5單位 降價逾1成放售


BC室已交吉 D至F室連約售