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130sqft Hong Kong Store Sells at Record Price of $23million
A tiny Hong Kong store measuring
just 130 square feet (12 square
metres) has sold for more than
$23 million, as prices reach
astronomical levels in a city ranked
the most expensive for retailers in
the world.
The southern Chinese territory
was accorded the title by
commercial real estate giant
CBRE in February, as prime rents
surpassed those of the most
exclusive addresses in New York,
London and Paris.
The shop, located in Hong Kong’s
retail heart of Causeway Bay,
sold at a rate of HK$1.38 million
($177,726) per square foot,
breaking a previous Hong Kong
80
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record of HK$932,000 per square
foot, the South China Morning
Post reported.
“Buyers probably think that Hong
Kong retail prices are still on the
rise,” CBRE Executive Director
for Retail Services Joe Lin told
AFP, saying the buyer may have
thought the store was a good
investment.
Mainland Chinese tourists will
continue to visit the city in large
numbers and will “keep the rent at
a very high level”, Lin explained.
He also said the ground-level
shop, whose current tenant sells
electronic appliances, was bought
at such a high price because of
the shop’s prime location in the
district.
Lined with luxury stores, the area
is near major shopping malls and
attracts a large number of locals
and mainland Chinese tourists.
Government figures show that
visitors from mainland China
accounted for 75 percent of the
city’s tourist arrivals in 2013.
Retail rents in Hong Kong’s prime
locations stood at $4,334 per
square foot last year, beating
runner up New York at $3,300
per square foot by a large margin,
CBRE said.