26 August 2009 (Hong Kong) – Knight Frank is appointed as the sole agent to sell Hotel Olympic Terrace Suites, 256-258 Tung Chau Street, West Kowloon.
Hong Kong’s property market continues to rally in recent months on the back of a low interest rate environment, an improving global economy as well as capital inflow from Mainland China and overseas. Luxury residential properties have been leading the market rally in the past few months, but there are signs that investors are shifting their money to commercial investment properties. Recent en-bloc sales transactions included three retail units sold by Merrill Lynch for HK$1.59 billion and 12 floors in Low Block, Grand Millennium Plaza in Sheung Wan sold for about HK$$1.3 billion. Investors also have a strong appetite for serviced apartment and hotels, in addition to commercial properties. Knight Frank records six transactions involving serviced apartments and hotels so far this year which are listed below:
|
Transaction month
|
District
|
Property
|
Type
|
Consideration
(HK$ million)
|
Area (Approx. sq ft)
|
Price (HK$ per sq ft)
|
|
Feb
|
Tsim Sha Tsui
|
Mingle Place, 8 Observatory Court
|
Hotel
|
$93.0
|
16,405
|
$5,669
|
|
May
|
Central
|
Shama Soho, 9-11 Staunton Street
|
Serviced Apartment
|
$71.8
|
5,800
|
$12,379
|
|
Jul
|
Mongkok
|
Hampton Hotel, 11 Cheung Sha Street
|
Hotel
|
$147
|
26,140
|
$5,624
|
|
Aug
|
Causeway Bay
|
Rosedale On The Park, 8 Shelter Street
|
Hotel
|
$838
|
102,173
|
$8,201
|
|
Aug
|
Sheung Wan
|
105-107 Wing Lok Street
|
Serviced Apartment
|
$100
|
13,599
|
$7,353
|
|
Aug
|
Wan Chai
|
Fraser Suites, 74-78 Johnston Road
|
Serviced Apartment
|
$580
|
58,108
|
$9,981
|
Raymond Fung, Director of Investment Department at Knight Frank, says in recent months, strong demand for hotel properties has been witnessed amid the influx of Mainland tourists and budget travellers from overseas. The owner of Hotel Olympic Terrace Suites, after having received a number of enquiries, decided to put the property up for sale through sole agent Knight Frank. Hotel Olympic Terrace Suites is a high-quality for-sale hotel property rarely available in the market. Located in West Kowloon at the junction of Tung Chau Street and Kweilin Street, the development is close to Nam Cheong Station, the interchange for Airport Express, Tung Chung Line, West Rail Line and Kowloon Southern Link, which provide convenient access to various districts in the territory.
“Hotel Olympic Terrace Suites is adjacent to Urban Renewal Authority’s redevelopment projects in Hai Tan Street / Kweilin Street / Pei Ho Street. This highlights the property’s strategic value for the unification of the projects and the huge potential of this area in the future,” says Mr. Fung.
Hotel Olympic Terrace Suites is a 25-storey building (excluding the ground floor) providing 63 guest rooms in total. Each suite comprises a spacious living and dining room, a pantry and a bathroom. Facilities of the hotel include an indoor heated swimming pool, a fitness centre and a business center. Most suites with two to three bedrooms enjoy the panoramic harbour view of Stonecutters Island and Hong Kong Island. Besides being daily or monthly rented, the suites can also be sold as strata-title residential flats.
It is estimated that the property can fetch about HK$250 million.