The prices for Grade-A office buildings in core areas have continued to slump, with a recent case showing prices returning to levels last seen 14 years ago. A unit in Admiralty's Lippo Centre was recently sold for about HK$20 million, with the sale price per square foot at around HK$13,300, equivalent to prices from 14 years ago.
According to agents, this transaction involved Unit 05 on the mid-lower floors of Tower 2 in Lippo Centre, with a gross floor area of approximately 1,505 square feet.
The unit offers city and mountain views and was sold with vacant possession. Current market rental rates in the building are around HK$45 per square foot, which would give the new buyer an estimated rental yield of 4%.
The previous owner bought the unit in November 2012 for HK$27.39 million and used it for personal purposes for 12 years. With this sale, the owner suffered a loss of HK$7.381 million, representing a 27% drop.
Records show that during the peak of the office market from 2017 to 2019, units in Lippo Centre were selling for as much as HK$24,000 to HK$30,000 per square foot.
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