Bargain sale, collapsed deal reflect Hong Kong’s struggling retail property market

While North Point shop deal falls through, former home of Insomnia bar in Lan Kwai Fong sells for 60 per cent less than its 2015 value A foreclosure sale in Hong Kong’s Lan Kwai Fong area and a cancelled shop transaction in North Point reflect the impact of weak consumer spending on Hong Kong’s retail property market, which will remain under pressure through the end of the year, according to analysts. The Lan Kwai Fong property, home of well-known bar Insomnia until it closed in 2024, recently changed hands for 60 per cent less than its value in a 2015 sale. Meanwhile, the deal for the large street shop on King’s Road in North Point abruptly fell through after two months. The retail property market would continue to struggle through the end of the year because banks were unwilling to lend, while the future outlook depended on whether they were prepared to loosen the credit taps, said Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management. “There are still many foreclosed properties on the market, but the biggest issue is that banks are taking a very cautious stance on commercial real estate mortgages,” he said.

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