A Causeway Bay commercial property compulsory sale fails

A commercial property redevelopment project on Percival Street, Causeway Bay, has failed to sell at a compulsory auction, as New World Development (0017), who controls over 80 percent take in the sites, did not show up. 

A New World spokesperson said the group will make prudent considerations based on cost-effectiveness and market supply and demand at the appropriate time, with the goal of pursuing reasonable returns.

With a reserve price of HK$2.68 billion, the auction of land of nearly 20,000 square feet in site areas, is the biggest failed compulsory sale in history. 

Market confidence in the outlook for Hong Kong commercial property remains weak against a backdrop of persistently high vacancy rates for office buildings.