Market news: Causeway Bay’s Xiyun Building merger failed after 17 years, and the dreams of small owners and settled households to get rich were shattered

Hong Kong's economy continues to be sluggish, and the vacancy rate of office buildings has risen to 12.9%, a record high of about 20 years. This has led to the acquisition of the 65-year-old Xiyun Building, which lasted for 17 years, and the final developer failed to sell it. The protagonist It is the Jin Chaoyang Group, one of the major landowners in Causeway Bay.

After the failed auction, Jin Chaoyang issued a notice, "After careful consideration of the current economic conditions and real estate market in Hong Kong, especially the possibility that real estate values will continue to adjust downward, we have finally decided not to bid in the auction.

On the other hand, Jin Chaoyang pointed out that the market value of Xiyun Building after reconstruction is only about NT$2.1 billion, which is lower than the reserve price of NT$2.425 billion, so he plans to apply to the Land Tribunal to extend the time for holding another auction and apply for a lower reserve price to match the auction. The current market value of the lot is the same. "Although Jin Chaoyang plans to apply to the Land Tribunal to hold another auction, the notice also states at the end that "an application for extension has not been made, and there is no guarantee that further auctions will be held." This reflects that Jin Chaoyang expects the outlook for Hong Kong's real estate to remain sluggish.

A group of small owners who stayed in the building until the last moment, as well as some investors who bought the units in the early years, returned disappointed.