Posted by
OffThePeak
12 yrs ago
A good shop cost way more per sf than a residential property
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$1m for a shop?? I'm pretty certain you will not find that anywhere.
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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.
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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.
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