The Urban Renewal Authority (URA) has been making headlines with its acquisition of a 1,200-square-foot shop on Fa Yuen Street in Mong Kok for HK$19.92 million, a 30% premium over market value. (The shop measures 16 feet wide and 57 feet deep; a 4% return translates to a monthly rent of HK$66,400.)
The URA announced the redevelopment plan for Sai Yee Street/Fair Market Road two years ago and has recently been making acquisitions. The latest acquisition is a 1,200-square-foot shop at 224B Fa Yuen Street, Mong Kok, for HK$19.92 million, more than 30% above market value, but approximately HK$1.08 million lower than the owner’s asking price. Simultaneously, the URA also acquired a ground-floor shop at 219 Sai Yee Street, Prince Edward, for HK$28.46 million. The owner had previously offered the shop for HK$55 million but failed to sell, ultimately leading to the acquisition of both properties.
The URA announced the redevelopment plan for Sai Yee Street/Fair Market Road two years ago and has recently been making acquisitions. In addition to the aforementioned shops, the Urban Renewal Authority (URA) also acquired a ground-floor shop of over 1,000 square feet at 226 Fa Yuen Street, Mong Kok, earlier this month for HK$19.85 million, also exceeding the market valuation by about 30-40%.
Owner Asked HK$21 Million; Estimated Value Expected to be Less Than HK$15 Million
Market analysts pointed out that the URA’s acquisition price of HK$19.92 million was quite close to the owner’s asking price of HK$21 million. They also revealed that without the URA’s acquisition, the shop’s estimated value would likely be less than HK$15 million.
Receives a 10% Subsidy Based on Property Market Value; Expected to be Around HK$1.5 Million
They further revealed that the acquisition price did not yet reflect the additional subsidy of 10% to 35% that the URA will provide. According to the URA website, “Owners of rented or vacant properties are eligible for a non-residential unit subsidy of 10% of the property’s market value upon vacancy.” Based on a maximum market value of HK$15 million, the owner is expected to receive a maximum acquisition subsidy of HK$1.5 million. Taking this into account, the transaction price of HK$19.92 million means the original owner could realize a total of HK$21.42 million.
Property Appreciates 116 Times in 54 Years
Data shows that the original owner purchased the property in January 1972 for HK$170,000. The shop was subsequently transferred to family members for joint ownership through probate and consent in 2023. Based on the latest acquisition price, the property has appreciated by over HK$19.75 million in the past 54 years, representing a 116-fold increase.
Note: The Urban Renewal Authority’s (URA) acquisition price for commercial properties consists of “market value” plus “special subsidy.” The URA commissions two independent surveyors to conduct valuations, using the higher result as the pricing basis, and issues corresponding special subsidies based on the shop’s use and the owner’s circumstances.
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From 2025 to the first half of 2026, The Grand Hong Kong has successfully sold 24 street-level shops in Hong Kong, totaling HK$396 million. The following 8 properties are now available for sale at reduced prices until July 2026:
The following properties are for sale with high returns:
(1) Shops 1, 10, 11, 12 & 13, Princess Building, King’s Road, Fortress Hill – Miss Ice Room
HKD 65 million, now HKD 42 million, 4.9% return
(2) Ground floor and mezzanine, 20-24 Ma Sha Street, Sheung Wan – Reveri
HKD 38 million, now HKD 33.9 million, 4.6% return
(3) Ground floor and mezzanine, 108 Fa Yuen Street, Mong Kok – Yin Jin Dim Sum
HKD 33 million, now HKD 22.9 million, 4.6% return
(4) 16 Dymbufong Street, Mong Kok – The Madhouse
HKD 28 million, now HKD 20.8 million, 4.6% return
(5) Shop 3 and mezzanine, Kam Fai Road, Yuen Long – Egg waffle snack
11 million HKD, now for sale at 9.1 million HKD, 4.6% return
Other prime shops for sale:
(6) Shop 4, B/F, Kai Fung Building, 10 So Hang Street, Sheung Wan
21 million HKD, now for sale at 17 million HKD
(7) Shop C, G/F, 111-121 Sai Yee Street, Mong Kok
28 million HKD, now for sale at 22 million HKD
(8) Shop M, Yun Tung Building, 65-75 Luther Road, Tsuen Wan
24 million HKD, now for sale at 20.4 million HKD
Valid until July 30, 2026
Detailed listing and photos:
Contact me (Lee Kin Hing 90361143) or my colleagues:
Desmond Chan 9660 2253 / Vivian Lee 9311 9274 / Marc Kwok 6092 6444 (Head)
www.bwfund.com
Dr. Edwin Lee, Founder of The BW Fund. Since the fund’s inception in 2016, he has acquired 133 street-front shops in Hong Kong, totaling HK$2.224 billion. His life goal is to buy 1,000 stree…
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