Shops price went high and speculators are separating shops for sale

Article from (Reporter: Chow Wing) In the past when investors invest in shops, generally it is long-term investment since they could earn rent as well as the value addition. However, the situation changed in recent years. Pinpointing the demand of particular shops, a lot mof smart investors has invested large sum of money in buying a big shop and then separate it into several smaller ones to sell with profit. 　 The most outstanding example this year is Yi Pakkuen has bought a big shop in Tsuen Wan with HKD 490 million and then separate it into 210 smaller shops and sell more than 200 in a short period of time. On the other hand, another investor surnamed Cheung and Chan has bought Royal Emperor Plaza with HKD 1.45 million and separate floors to sell out. Hang Seng Bank offer Kam Heung Building for sale 　 In fact, shops have prices and market to attract owners to sell the properties which hold for a long time. Kam Heung Building in Aberdeen owned by Hang Seng bank has released 1st floor and shop A, B and C for sale in tender format. The estimated ptice is HKD 150 million and the deadline of the tender is Wednesday, 9th January, 2013. 　 The property includes1st floor and shop A, B and C with a total area of 5,800 per square feet. Since the property has installed a ladder inside, it could be separated to small shops and sell. The flexibility is high. 50% share of property and has re-construction value 　 Chan ChuWei, the senior director in Joneslandlasalle reveals that the property is 3-sided and ladders are installed which is so rare. To speak from the location and quality of the property, it should be popular to investors. Since the property shares 50% of the ownership, and the property shares a land area of 3,194 per square feet, it has a value of reconstruction. 　 Apart from that, he points out Aberdeen has only a few properties with big construction area offering for sale, adding the good potential of sales industry, a lot of senior investors has already bought in shops there. Currently the average price of the shops in the same area has exceeded HKD 20,000 per square feet. The average price of the rent has also increased to more than HKD 50 per square feet. It is expected that the sold property could achieve HKD 400,000 per month with a return rate of 3.2%.

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