Harmony Auto Renews East Kowloon Flagship Lease for HK$1.13M Monthly Amid Market Slump
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Harmony Automobile has renewed its lease at Sanchang Kowloon Bay Logistics Centre for approximately HK$1.13 million per month, covering over 92,900 square feet of prime showroom and service centre space in East Kowloon . The deal encompasses two units: a 65,096-square-foot facility on the 7th floor at HK$14 per square foot, and a 27,867-square-foot basement workshop at HK$7.8 per square foot . Despite commercial property market headwinds that have driven down rents by 50-80% from peak levels, the EV service hub maintained relative stability with only a 24% decline from its 2019 peak of HK$290,000 . The renewal highlights Harmony's long-term confidence in Hong Kong's electric vehicle market following its acquisition of Lian Da Automobile's BYD dealership assets for approximately HK$150 million in November 2024 . Goodman Group, which owns the property, enjoys a yield of approximately 3.18% based on the current rental income .
Key Points
- Harmony Automobile renewed two units at Sanchang Kowloon Bay Logistics Centre totalling 92,963 square feet for HK$1.1287 million monthly
- The 7th floor C unit spans 65,096 sq ft at HK$911,300/month (HK$14 psf), while Basement B covers 27,867 sq ft at HK$217,363/month (HK$7.8 psf)
- In 2019 market peak, the basement alone commanded over HK$290,000/month; the current 24% decline significantly outperforms broader market drops of 50-80%
- Harmony acquired Lian Da Automobile's BYD dealership assets in November 2024 for approximately HK$150 million, including inventory, showrooms, service centres and warehouses
- Goodman Group purchased the 7th floor (69,700 sq ft) with 8 parking spaces for HK$368 million in May 2021, yielding approximately 3.18% on the current lease