In May, the number of registered commercial properties exceeded 300, marking the first time since August 2023. According to data from the US Commercial Property Research Department, there were a total of 350 registered commercial properties in May (mainly reflecting the market conditions in April). This represents an increase of around 17.4% from the previous month, with the registered amount reaching 43.62 billion yuan, a monthly increase of about 41.0%. The bank believes that after the government lifted property cooling measures, developers started selling residential properties, which led to a concentration of funds in the first-hand residential property market. This phenomenon extended the trend of “price for volume” to the commercial property market. As developers continue to sell new properties at low prices, it is expected that the situation of “price for volume” will persist, and the volume of commercial property transactions is expected to become more active in the future.
In May, the total number of registered properties reached 350, representing a monthly increase of about 17.4%, and the registered amount stood at 43.62 billion yuan, a monthly increase of about 41.0%. Among these, the number of registered properties in the three major commercial property sectors increased by approximately 18.9%, 15.4%, and 16.5%, respectively.
In terms of transaction amount, the category with the most registered transactions was properties valued at 5 million yuan or less, with 192 transactions recorded in the latest data, representing an increase of about 22.3% from the previous month. This was followed by properties valued at over 5 million to 10 million yuan, with 78 transactions registered, a monthly increase of about 52.9%. The registration of properties valued between 20 million and 50 million yuan continued to increase, with 30 transactions recorded in May, representing an increase of about 20.0%. However, properties valued between 10 million and 20 million yuan saw a decrease of about 35.1% month-on-month, with 37 transactions recorded, being the only category that experienced a decline in registrations.
In May, there were four registered transactions exceeding 100 million yuan, with two registered in the commercial and retail property sectors each. The entire building of 88WL in Central and the entire 30th floor with a parking space in the Bank of America Tower in Admiralty transacted at 700 million and 260 million yuan, respectively, with prices per square foot at around 7,761 yuan and 18,732 yuan, significantly lower than the market prices. In the commercial property sector, an investor purchased multiple shop spaces in Phase 2 of Tsuen Wan Centre at 200 million yuan. In addition, individuals related to Sun Hung Kai Properties bought multiple shop spaces on the ground floor and first floor of The Austine PLACE at 138 million yuan in Jordan.
The CEO of the US Commercial Property, Lu Zhanhao, stated that the recent increase in commercial property transactions is believed to be due to some developers selling their new properties and excess inventory at lower prices following the complete removal of cooling measures by the government. This accelerated the capital inflow, leading to a concentration of funds in the first-hand residential property market. In response to this trend, many commercial property owners lowered their asking prices to attract buyers, extending the phenomenon of “price for volume” from the residential market to the commercial property market. With developers continuing to sell new properties at low prices, it is anticipated that the trend of “price for volume” in the property market will continue, and the price difference in the commercial property market will continue to narrow. Therefore, the volume of transactions in the commercial property market is expected to become more active in the future.