Gough Street building fetches $277m in Hong Kong auction

The Central asset has a mixed-use redevelopment potential.

A six-unit property on Gough Street in Central was sold for $277m at a public auction on 22 May under Hong Kong’s Land (Compulsory Sale for Redevelopment) Ordinance.

In a statement, JLL, acting as auctioneer for the sale, said the property at Nos. 35, 37, 37A, 37B, 39 and 39A Gough Street was sold pursuant to an Order for Sale granted by the Lands Tribunal with Or Pu Kwan as the buyer.

According to the property consultancy, the site comprises a 68-year-old five-storey composite building with a basement and sub-basement.

Based on the occupation permit, the sub-basement store and front ground-floor shops are designated for non-domestic use, whilst Chinese-style apartments at the basement, rear ground floor, and first to fourth floors are for domestic use.

JLL said the site spans about 4,917 square feet and is zoned “Residential (Group A) 10” under the approved Sai Ying Pun and Sheung Wan Outline Zoning Plan.

The property was sold partly with vacant possession and partly subject to existing lettings, tenancies and licences, if any, as well as existing building orders, on an “as is” basis.

Cynthia Li, senior director of project strategy and consultancy at JLL Hong Kong, said investor interest in ageing urban assets has picked up amidst improving market sentiment.

Li said the property’s location near Central and Sheung Wan makes it suitable for redevelopment into a mixed-use commercial and residential project.