Russell Street rent yo-yo stays on downswing

The rent of a 1,100-square-foot shop in Russell Street in Causeway Bay - once one of the most expensive commercial streets in the world - has slumped 90 percent from its peak to HK$300,000.

The shop on the ground floor will be turned into an accessories store under a new long lease, with a rent about 77 percent lower than the previous long lease contract.

During the peak season for travelers from the mainland years ago, it was rented by a optical store in a chain for HK$2.50 million. That lease ended in 2020.

Meanwhile, an application by Sun Hung Kai Properties (0016) to build 65 percent more homes, or 2,589 units, on a site in Kwu Tung is set to get the green light from the Town Planning Board tomorrow.

In the primary market, Wang On Properties (1243) has unveiled a first price list for its Larchwood project in Mong Kok, which offers 50 flats. The cheapest is HK$3.83 million.

Wang On won the redevelopment tender for over HK$326 million in 2020.

In earning news, K Wah International's (0173) core profit increased by 1.2 times year-on-year to HK$1.06 billion for the first half of 2022 thanks to new projects in the mainland being well received and stable rental income. Net profit for the first half climb 39 percent yearly to HK$1.08 million, while its total revenue soared 79 percent to HK$5.79 billion.

There was an unchanged interim dividend of 7 HK cents.

In other news, the one-month Hong Kong interbank offered rate, on which mortgage borrowing costs are based, rose to 1.80327 percent yesterday in ending a decline after four days.