Best investment property?

I plan to buy an investment property of around HK$5mn in Sheung Wan or Central. Agents recommend Hollywood Terrace or Queen's Terrace or Centrestage as good long term investments. Is this good advice?

is property still a good investment?

after the short bull run in property in 2004/5, it seems rather stagnant now, especially in the secondary market.

It's just my personal view that HK is one of the two property markets in the world that is a long term one way bet. The other is London: there is alays money from somewhere chasing London (from Middle East, Africa, Russia); and there will always be Mainland money coming into HK. Meanwhile, yields comfortably cover your investment cost. I may be wrong: let's diarize to check in 2020 when I will sell the properties to fund my retirement!

Chrisitian, have you ever thought of investing in Macau? The potential for capital appreciations is much more there as comparing to the mature market of HK properties. Some useful info under 'Macau Properties' chats

Hi Patrick,


I am interested in rental property in Hong Lok Yuen. Could you pm me contact details. I have tried and not found very much info on the net.

New buildings = small bedrooms. If you want something that's easy to rent out I'd go for an older property. If you can find something that you can renovate nicely you should be able to rent it out with no problem.

Honestly, if you talk about 5M budget, in my opinion I would suggest you to invest some "classic nice" area such as: Mid-levels, Happy valley, Tin Hau temple rd, North point mid-levels, Ho Man Tin or Kowloon Tong. Anywhere in NT, it would be very risky. Just play safe.

Hi Patrick,


thanks for your comments. How can i contact

you?

I am looking at a few investment propoerties in Soho, not really looking at the older chinese flats because its too much hassle to fix up and the upfront deposit is a lot because the bank valuations are 40% below asking prices.


So i've been looking at newer 500+ sq foot flats for which I think I could rent out for around 11k ..giving me a gross yield of 5.6% on the estimated purchase price of 2.35mio


should i pull the trigger..? still requires a downpyment of around 700k plus closing costs...

I believe some of the best investment properties now can be found in Australia where rental rises and low supply has definitely forced the upward rise in most of the areas.


Take Queensland and Perth. Sydney is soon to follow .

some parts of HK south are upcoming and still affordable. Aberdeen and Ap Lei Chau area (next to Jumbo, Aberdeen Yacht Club and Ocean Park) have been earmarked for redevelopment, with a fisherman's wharf, new hotels, and some promenade along the coast. As opposed to Tung Chung, the air is quite clean since it is on the Southern Tip of HK island. Two estates worth looking at are South Horizons (though a bit densely populated) and Sham Wan Towers (the newer alternative).

2006 - Though the budget is within your range, Centrestage seems to have low efficiency and a bit far off from the Escalator, especially during the summer when even a 10 minute walk can be a killer. It's also on Hollywood Rd, closer to Sheung Wan and hence not really "traditionally" the Midlevels.


How about Tycoon Court which has the Midlevels "look" and IS close to the escalator? Anything closer to Central Midlevels would be considered "classier," and while many have made some money off developing the SOHO/NOHO areas, I still think it doesn't have the upper-middle-class neighborhood sense of establishment of the traditional areas attributed to the Midlevels.


Properties on Robinson and Conduit Roads have a "sense of establishment."


$5m can still command respectable properties on Kennedy, Conduit, Robinson Roads.


It depends on whether you're trying to speculate and have a substantial return for your investment in the short term future or whether you're aiming for capital preservation. With your budget and the goal of capital preservation, I'd go for the Midlevels and as close to the Central Midlevels as possible. (Robinson Heights, Tycoon Court, etc.)


If you are speculating and are looking for a large percentage of increase... well, *everyone* is looking for that :) I don't have the answer. As far as I am concerned a feng shui master has told me that the Period 8 Luck of development is in the Western areas of HK, which according to him, has seen rapid development in the past decade with the airport, Disneyland, Tsing Yi, Tung Chung, West Kowloon, etc. If you don't believe in feng shui, that's fine but it's undeniable that there's development there and it's doing quite well. Tai Kok Tsui is becoming more "gentrified," and it certainly wasn't 20 years ago. It still needs time but the development is obvious with the Tung Chung line nearby.


How about Harbour Green and other developments near Olympic Station? Kowloon Station, etc.? I don't know how these places will turn out but there certainly has been a great amount of growth.


By the way it's been 2 months since you posted originally. Have you made a choice yet?