Unreal real estate prices mean death for traditional churches.
This recent news clip reminds us of how super-expensive expensive city real estate has become in some localities. Millions of dollars for just a small room. Granted, Hong Kong is not a typical city in many respects.
Where are the traditional church plants with those kinds of funds at their disposal? And remember that the world is becoming more urbanized and the trend is expected to continue. More and more people are heading for the cities of the world.
Hong Kong shop owners willing to sell even if it means incurring a loss of HK$6 million
A 435 square feet shop in Shau Kei Wan sells for HK$7.3 million (US$932,600) compared to HK$13.3 million paid in 2012
Ricacorp Properties expects shop transactions to fall to the lowest level since the agency starting collecting data in 1995
Sunday, 17 November 2019, 10:00:AM
As the social unrest in Hong Kong shows no signs of abating, retail property owners are either selling high street shops at losses of nearly 50 per cent or offering massive discounts on rents, with market observers expecting the number of sales transactions to sink to an all-time low.
“Shop prices and rents will definitely fall further. Potential buyers are asking for up to 40 per cent discount even after sellers have already cut their original asking prices significantly,” said Kenneth Yau, senior sales director at Midland Shops, a unit of Midland Realty, adding that prices of shops in less prime locations would suffer the most.
Last week, a 435 square feet ground-level shop at 30 Factory Street, Shau Kei Wan changed hands for HK$7.3 million (US$932,600) compared to HK$13.3 million paid in 2012 – a loss of HK$6 million or 45 per cent.