油塘湾「巨无霸」商住项目未来发展备受市场关注，其发展范围内由金宝集团持有的荣山工业大厦，去年向城规会申请重建1幢楼高29层的商厦，可建总楼面约54.4万方呎。最新获规划署原则上不反对，城规会将于明日举行会议审议时料会「开绿灯」通过。该公司指，涉及总投资逾20亿，以打造区内新地标。

规划署指，拟建商厦与邻近景观等并非不相容，项目申请的建筑物高度限制及地积比率并非不合理，故该署原则上不反对有关申请，而城规会将于明日举行会议审议时料会「开绿灯」通过。

城规会料「开绿灯」

金宝集团主席李秀恒回覆本报查询时指，该项目本来打算彻底翻新，改作商场、商厦及酒店综合项目，最新决定拆卸重建，原因是工厦贴近海傍，因应政府要求，将腾出20米作为海滨长廊，地盘面积将由现时约5万方呎，减至只有约4万方呎，工厦现时楼高60米，重建后楼高约130米，以打造区内新地标。

他又称，项目将重建商场、商厦及酒店综合项目，惟暂未决定3者比例，视乎市况而定，初步估计每方呎建筑费约4000元，总投资逾20亿。

他续说，由于项目位处综合发展区，未能享受工厦活化政策，另外，该项目早于2008年已向政府完成补地价程序，以作商业用途，当时每呎补价100元，涉及补价金额约5500多万。

可建总楼面逾54.4万呎

据城规会文件显示，荣山工业大厦位于油塘海旁地段第73及74号，现时属「综合发展区」地带，申请改划为「商业 (1)」地带及修订「商业」地带的《註释》；地盘面积约49514方呎，以地积比11倍发展，拟建1幢楼高29层、包括1层防火层，另有5层地库的商厦，涉及可建总楼面约544658方呎。

近年油塘区发展步伐加快，不少财团积极改划区内项目发展，最瞩目为恒基、新地及会德丰地产等六大发展商合作发展的油塘湾「巨无霸」商住项目，市场消息透露，政府早前第三度批出项目的补地价金额，平均每方呎楼面补价约6000元，涉及金额约245亿，但因金额过高，发展商拒绝接纳并提出上诉。

(星岛日报)

救世军购葵涌同珍工厦 一篮子物业作价1.22亿

工厦受追捧，再有用家出手，慈善机构救世军购入葵涌同珍工业大厦一篮子物业，作价1.22亿，6年间升值约67%。

金朝阳沽货 6年升值67%

金朝阳于今年5月放售葵涌同珍工业大厦一篮子物业，意向价约1.6亿，平均呎价约4315元，上月由慈善机构救世军以1.22亿承接，较意向价减3800万，平均呎价3290元。该物业位于昌荣路9至11号同珍工业大厦地下至3楼一篮子物业，建筑面积合共约37081方呎，连约出售，新买家 THE GENERAL OF THE SALVATION ARMY，即是慈善机构救世军。目前，救世军使用同珍工业大厦上述的部分楼面，作为办事处，今番由租客晋身业主。

金朝阳于2017年以7300万买入上述同珍工业大厦一篮子物业帐面赚约4900万，幅度67%。

工厦频录用家承接

近期工厦频录用家承接，其中，北角英皇道657至659号东祥工厂大厦，由大型出版商联合出版集团购入9楼A及B室，作价3800万，建筑面积约7980方呎，平均呎价约4762元。联合出版集团持有该厦4楼及7楼部分单位自用，是次增购9楼单位，料作为自用。原业主分别于1973年及1983年购入A室 (39万) 及B室 (15.73万)，合共54.73万，帐面获利3745.27万，升值68.4倍。

(星岛日报)

Over a fifth of Hong Kong’s office tenants likely to reduce office space, with many relocating to mainland China and Singapore, study finds

More than a fifth of the respondents polled in Hong Kong said they would downsize their office space in the next two years and relocate elsewhere

Poll respondents cite cost cutting, shrinking business demand and work-from-home policy implementation as the reasons behind their choice

More than a fifth of office tenants in Hong Kong are likely to downsize their space in the next two years with some even looking to relocate to mainland China, Singapore and other parts of the world as they cut costs in a weak economic environment, according to a study released by an international property consultancy on Wednesday.

In a poll of 321 companies, the first since Hong Kong and mainland China scrapped all coronavirus pandemic curbs, 21 per cent or 69 of the respondents said they were likely to trim their operations, citing costs, shrinking business demand and further implementation of work-from-home policy as the top three reasons for their outlook.

“Some occupiers mentioned that their company’s capacity to relocate contributed to their decision,” the study by the property consultancy said. “Among all occupiers planning to downsize, 14 per cent cited relocating capacity to mainland China, 13 per cent to Singapore and 9 per cent to other parts of the world.”

“Businesses are motivated by optimising costs and adapting to changing market demands,” it added.

The poll was conducted from late June to early August and more than half the respondents were Hong Kong-based firms, 18 per cent from Europe and 11 per cent from other Asian cities.

Although 26 per cent of those polled said they would expand their office space and 53 per cent said they were likely to keep their current real estate requirements, the short-term outlook of those planning to leave could pile more pressure on a beleaguered property segment.

“While the majority of the occupiers intend to remain the same in terms of office size, the fact similar proportions of the respondents plan to expand or downsize reflects that the impact of the global economy on business operations and relocation needs vary across industries,” a property consultant said.

The vacancy rate in Hong Kong’s prime office space hit a record high of 15.1 per cent towards the end of August, according to the consultancy, beating the earlier peak of 13.1 per cent struck in September 2003.

Monthly office rental rates have declined 30.3 per cent to HK$54.70 (US$6.98) per square foot from the high struck in January 2019, when office vacancies were at a record low of 3.5 per cent, according to the consultancy.

More supply is scheduled to come on stream with about 3 million sq ft of new office space expected in the second half of the year, the consultancy said in a previous report.

Among the sectors, those in manufacturing, sourcing and trading, and shipping and logistics were the most pessimistic with about a third saying they were likely to reduce their office footprint.

Notably, the split in the real estate and construction sector between companies that said they would expand or reduce their office space was equal at 28 per cent, the study showed.

On the other hand, companies in the IT, banking, finance and insurance sectors were the most optimistic. About 56 per cent of those polled in the IT sector and 35 per cent in the banking, finance and insurance sectors said they were likely to add more office space.

“Respondents identified Hong Kong’s economic outlook (43 per cent) and a potential global recession (34 per cent) as the most important factors likely to impact their business over the next three years,” the study said. “Despite Hong Kong’s slower-than-expected recovery in the first half of 2023, business confidence is improving, with most respondents, especially those in banking and finance and professional services, optimistic about their business outlook over the three years, while 37 per cent of them believe their business will not change.”

The study recommended more flexibility from landlords such as shorter lease periods to adapt to the changing needs of their tenants.

“Supplementary incentives could include rent-free periods and contributions towards fit-out costs,” the consultancy said.

(South China Morning Post)

CWB store is rented for a song

A Causeway Bay store has been leased at rock-bottom rates last seen during the Covid pandemic.

The monthly rent of HK$180,000 is also 80 percent lower than peak rents seen at the same prime location.

The 1,325-square-foot rented store includes shops 1 and 2 on the ground floor of The Goldmark on Hennessy Road, near the Sogo department store.

The new tenant is a fashion shop, a real estate agent said. Though it is a short-term lease, the price is the same as the rent paid by a mask brand during the pandemic.

Lukfook Jewellery once paid as much as HK$3.5 million or HK$636 per sq ft to rent shops 1 to 7 at the building but the retailer vacated the premises during the pandemic. Thus, in terms of the price per sq ft, the new lease is about 80 percent lower than those peak levels.

In June, Chanel rented a shop at the adjacent at Capitol Centre for HK$3 million a month, or HK$158 per sq ft, which marked the largest commercial shop deal in Hong Kong in the past three years.

(The Standard)

Home completions dive 62pc

Private home completions slumped by 61.7 percent month-on-month in July to just 128 units, according to data from the Rating and Valuation Department.

It brings the total number of completions in the first seven months to 7,684 homes, which is about 38.5 percent of the government's full-year projection.

The downtrend was primarily due to the substantial inventory of unsold flats in new projects, prompting developers to slow the pace of completions in an effort to reduce unsold stock, a property agent said.

The agent noted that since March this year, monthly completions for new residential units have consistently remained in the low three-digit range, with May seeing a two-and-a-half-year low of just 86 units.

Furthermore, the scarcity of construction starts in 2020, totaling just 6,704 flats, has also contributed to the reduced number this year.

With only 7,684 homes built in the first seven months, the agent expects that it is unlikely that the annual target of 19,950 units will be reached.

The majority of the supply consists of small to medium-sized flats, with 4,352 units of 431 square feet or less completed this year, making up about 56.6 percent of the total supply.

In the primary market, Henderson Land (0012) posted the fourth price list for its Baker Circle Greenwich in Hung Hom, offering 28 flats at an average discounted price of around HK$19,038 per sq ft, the same as the third price list. Sales of these units start this Sunday.

In other news, a survey by an international property consultancy showed 56 percent of firms in the information technology sector expressed a strong interest in expanding their offices. Conversely, sectors such as manufacturing showed less interest in expansion, with 31 percent planning to downsize their offices.