Tsuen Wan project boosts industrial sales in July

Sales of industrial properties surged last month, driven by strong demand for small factory units in HKR International's DAN6 project in Tsuen Wan.

A total of 376 industrial properties were sold in July, according to commercial real estate agency Ricacorp (CIR) Properties, up 89 per cent from the 199 transactions in May and 80 per cent higher than the 208 sales in June.

But as the weight of sales swung to smaller factory units, the total sales value grew a slower 11 per cent to HK$2.55 billion in July from HK$2.29 billion in June.

"The increase is mainly due to the launch of [DAN6] in Tsuen Wan, where about 200 units or 90 per cent of the industrial premises were sold in about three days," said Raymond Chu Leung-hang, senior district director at Ricacorp. Lump sum prices for the small units ranged from as low as HK$1.99 million to HK$6 million.

Chu said HKR began selling the industrial units in late June at prices between HK$4,600 and HK$6,600 per sq ft.

"Buyers needed to pay a doubled stamp duty of 3 per cent instead of 1.5 per cent. But on a unit costing HK$2 or HK$3 million that translated into an extra cost of only HK$30,000 to HK$45,000, and buyers were not put off," explained Chu.