A well-known entertainment company in Hong Kong has paid $108 million for a shop located in one of the busiest districts, according to a report.
The sale of the 1,212 square feet shop comes as the HK government tried to contain increasing property costs due to fears that they are becoming uncontrollable.
The selling price works out to around $90,000 per square foot (psf), making it the most expensive retail space in the city.
“It is unknown if this is now the most expensive shop in the world, but obviously it’s a record in the city,” said real estate agent Lawrence Wong.
The shop, which is located in the busy district of Tsim Sha Tsui, houses luxury shop Emperor Watch & Jewellery, run by tycoon Albert Yeung.
The Emperor Entertainment Group of Mr. Yeung has contracts with several Cantonese pop stars. Its subsidiary, which had been renting the space, purchased the property due to “the investment value of the location and a basic need for the shop.”
HK’s previous record for a retail space was set by Mr. Yeung’s brother, Ricky, in May. He paid $58,000 psf for a shop in a nearby location.
Henderson Land Development said in October that it sold a five-bedroom luxury residential duplex in the city’s Mid-Levels area for $57 million or $11,300 psf.
The government is considering plans to control the property prices as concerns grow about a possible bubble forming in the market.
Hong Kong has had several record-breaking real estate sales in the past few years, as mainland Chinese investors and the low interest rates have increased the demand.