About the hot partitions selling of commercial shops in market, many senior investors expressed, they will be more careful to into the market and some of them even have stoped stocking. They said frankly that, some prices have already above the hottest level. The shop price is crazy and rent in some core areas already at top level. About the appearance of residential property investors swarm forward to buy commercial shops, investors reminded potential buyers to do more preparation before into the market and consider accordingly. Into the market blindly should be avoided. As for the shop market this year, Li Yong-tao, a senior investor predicted yesterday, shop market this year should able to continue the hot trend of last year. The major reason is the BSD makes more fund flowing into the market. But he believed at the same time the current market has risk. He reminded the unacquainted investors do more preparation and consider accordingly before into the market. For example, the level which the property’s rent can reach should be know and do not believe what anybody says.
Rent in some core area already up to the top.
For the crazy buying in the market, he pointed, it is true that many residential property investors change to commercial shops recently affecting by low interest environment and government’s measures. And some shop prices even over the hottest level. Rent in some core area also up to the top.
He added, the private invest amount last year was HKD 500 million. The amount of this year is unsure. They will major pay attention to the properties in hot areas. All the shops in hand have already be relet. Since there are still unclear factors in market after mainland’s 18th Party Congress and the recovery of US’s economy is slow, the current price of shops is crazy. Some senior investors have already stopped to into the market. It is estimated that the uptrend space this year is small because the shop’s price is high. The shops in hand also will be sold if the price is at expected level. It includes shops in D'Aguilar Street and Staunton Street in Central. Currently, the price of a noodle shop in Causeway Bay is HKD 200 million. Shops in Jinhui building, Cannon Street still not consider to be sold because the prices which potential buyers offered are under expected level even the offered prices up to HKD 200-300 million.
Good shops are getting more. The increasing of premium is less.
As for shops in secondary and third core area in market, he believed, the good shops in market are getting more. Plus with the rent already up to the top. So they will not consider to partitively sale or buy the shops in secondary and third core area for investment.
Huang Hai-ming, a senior investor who also there expressed, the invest amount last year was HKD 1.3 billion to HKD 1.4 billion. The involved amount is the largest since property peak in 1997. The fund planed to be invest this year will decrease. And they also will be more careful on the investment. The shop price’s rising range last year was 30%. So the estimated rising range this year will slow to 15%-20%. The estimated rising range of rent in core area will be about 20% and it only 10% in non core area. They look good to shop market in visiting area of Tsim Sha Tsui, Causeway Bay and Wanchai.
He pointed out, the investors who are at first time to invest shope market should take care. Since the premium of the shops which partitively selling recently is high and the increasing of the premium is leses, so the buyers should consider accordingly before into the market. Because the banks only mortgage 30%-40% commonly, so the investors should prepare enough money which maybe 60%-70% of the total fund before purchasing the property. It is estimated that the partitions selling will keep hot trend in first half of this year.
