Searching HKD 2 millions flat units Part II
(reporter JiaMing Huang) The past two QE (the fed quantitative easing policy) blow and make Hong Kong "real estate bubble". Whether residential or commercial shop, flat plates turn less and less. Follow by the earlier "looking for HKD 2 million starter homes", we launch Part II today to specially search the " flat " units at HKD2 millions which are in low price but contain appreciation potential. Our newspaper reporter survey and found that, there many items of this type in traditional old district. Their located just right in Kai Tak development zone, which possess the future advantages from Kowloon east long term investment, plus with stable 3% interest from rent , it is worth investors to pay attention.
Searching HKD 2 millions flat units Part II
Since the last government propose to starting Kowloon east investment on "Policy Address", market in positive reaction and many commercial shops investors in surrounding areas take optimistic attitude on later market. Recently the new district government choose Kai Tak development zone as the first location of "Hong Kong land for Hong Kong residents" plan. This news make the whole market expect higher on the Kowloon district development. Among the most affected traditional old district is Po Kong Village.
Kai Tak development zone lead development
In present time there no many large scale new properties in Po Kong Village and large shopping mall even less. The latest project only is The Latitude developed by Sun Hung Kai (0016) and its shopping mall Mikiki in the base, and next index properties are Yue Xiu Plaza and San Po Kong Plaza which are already 17 years and 16 years old. Above two both set the plaza in base but visitors flowrate just so so. Neighborhoods in district would rather go to the Plaza Hollywood near Diamond Hill even rather go to Kowloon City or Kowloon Bay for shopping.
On the other hand, many old commercial building make people feel unserviceable feeling. Moreover, since there is no train and the air quality just so so. Investors' evaluate for this district are mixed, which make this region ignore by the market. Even in recent the commercial property market is hot, there still "flat" units of plaza shops, commercial building offered, such as 2 shops in San Po Kong Plaza sold. One in 230 square feet offer price at HKD 2 millions, and the average sq ft price is HKD8,696. Another is in 115 square feet only offer at HKD1.28 millions. Even the sq feet price is high to HKD11,130, but admission fee is low, which is a good choice for the primary investors. The property at the same time rent at HKD4,200 a month at average sq ft rent HKD36.5. New investors can enjoy 3.9% rent returns. The agency points out, two units sold at market price. At investment angle, generally investor can enjoy above 3% rent return.
Shop earn 3% rent return
One of the shop unit owner Ms. Deng said, she actually would like to hire more than to sale, but if the buyer give a good price, of course consider it. She continue to point out she is the first time to invest the shop. Seeing the recent housing market prices keep rising, she feel it will not rise much in future and she found the shop price in Kwun Tong and Yau Tong rise a lot after last government propose to develope the Kowloon east, so she choose the Po Kong as the invest location which in Kowloon east. She believe, there will be benefit in Po Kong for its location which in Kai Tak development zone, Cruise terminal and also the the Shatin to Central Link. So she have optimistic attitude on the future development.
