Where to buy a shop? And how? When? Why?

G'day mates,

I am thinking of buying a small shop, perhaps in an area with future growth potential, e.g. close to a future MTR station.

Where do you think would be a good location?

Does anybody know how to get along with it? Do normal agents (who deal with flats) also deal with shops?

Any reason why I shouldn't be doing this?

Is it better to buy a flat? Have the prices of shops gone up as much as the prices for flats, in the last few years?

My budget is about $1 M. Can one get the same kind of mortgage than for a flat?

Thank you, if anybody can help.

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Posted by OffThePeak (394 days ago)

A good shop cost way more per sf than a residential property

Posted by mash108 (393 days ago)

$1m for a shop?? I'm pretty certain you will not find that anywhere.

Posted by Sid_1 (393 days ago)

Yes, that's also my impression, after checking a few sites. $5 M seems to be the lowest, and that's in a crappy shopping centre in Tai Po.

Can one make a mortgage for a shop, as for a home? Have the prices of shops gone up as much as these of a home?

Posted by Underdawg (393 days ago)

I looked at ground floor retail property sometime last year around the Sai Ying Pun area, near where the future MTR station will be located. At that time I saw a property that was around HKD15 million. I can't remember the size but I think it was around 600-800 sq. ft. I do remember that the estimated annual yield was about 2%. I guess once the MTR station is running the rents will go up. I think there is good potential but you have to use a lot of capital and expect low yields until the area picks up. I also looked at retail property in Kennedy Town and noticed similar prices and yields.

Posted by rob_378 (393 days ago)

Im far from an expert in this area, but regarding your question" is it better to buy a flat".. IMO there is always a need for housing, whereas opening a shop is not a necessity and perhaps more dependant on the economy. I think renting out a flat is a safer bet than a shop.. given that its in the right area and priced well.

"Have shops gone up as much as homes..." it really depends on the location.. but i would say yes and even more so in some cases.

Posted by walkup3 (392 days ago)

The streets off Tai Ping Shan Street will grow into the next Soho. You can see the first beginnings now.

Posted by Sid_1 (392 days ago)

Thank you all for your comments.

Posted by walkup3 (392 days ago)

There is an estate agent on the opposite side of the Hollywood Road to Central Park Hotel which deals in shop sales as well as apartments in the immediate area.