Investment Property in Hong Kong

Investment Real Estate in Hong Kong

Hong Kong property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Hong Kong.

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Search Map of Hong Kong Investment Real Estate

Hong Kong (Chinese: 香港, Cantonese: [hœ́ːŋ.kɔ̌ːŋ] (listen)), officially the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) (simplified Chinese: 中华人民共和国香港特别行政区; traditional Chinese: 中華人民共和國香港特別行政區), is a metropolitan area and special administrative region of the People’s Republic of China on the eastern Pearl River Delta of the South China Sea. With over 7.5 million residents of various nationalities in a 1,104-square-kilometre (426 sq mi) territory, Hong Kong is one of the most densely populated places in the world.

Hong Kong became a colony of the British Empire after the Qing Empire ceded Hong Kong Island at the end of the First Opium War in 1842. The colony expanded to the Kowloon Peninsula in 1860 after the Second Opium War and was further extended when Britain obtained a 99-year lease of the New Territories in 1898. The whole territory was transferred to China in 1997. As a special administrative region, Hong Kong maintains separate governing and economic systems from that of mainland China under the principle of “one country, two systems”.

Originally a sparsely populated area of farming and fishing villages, the territory has become one of the world’s most significant financial centres and commercial ports. It is the world’s tenth-largest exporter and ninth-largest importer. Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and its currency, the Hong Kong dollar, is the eighth most traded currency in the world. Hong Kong is home to the second-highest number of billionaires of any city in the world, the highest number of billionaires of any city in Asia, and the largest concentration of ultra high-net-worth individuals of any city in the world. Although the city has one of the highest per capita incomes in the world, severe income inequality exists among the population.

Hong Kong is a highly developed territory and ranks fourth on the UN Human Development Index. The city has the largest number of skyscrapers of any city in the world, and its residents have some of the highest life expectancies in the world. The dense space led to a developed transportation network with public transport rates exceeding 90 percent. Hong Kong is ranked 5th in the Global Financial Centres Index.

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The financial stability of Hong Kong has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Hong Kong

Renting out your Hong Kong buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Hong Kongare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Hong Kong and be prepared to change your initial outlook.
Thoroughly research the Hong Kong location with a special emphasis on fringe areas outside the main Hong Kong metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Hong Kong.
Ensure that your target investment property in Hong Kong appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Hong Kong properties yourself is an easy option, but are these savings justifiable when you run into Hong Kong red tape? Physis Realty Hong Kong office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Hong Kong buy-to-rent sector.

With our expert guidance, investing in Hong Kong provides the secure knowledge that your money is working harder than it would in a local Hong Kong bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Hong Kong, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Hong Kong property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Hong Kong

Flipping property in Hong Kong

Flipping property is when we advise clients to buy a Hong Kong property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Hong Kong market has a time to react to the renovation.

The Flipping Strategy in Hong Kong

Investment property flipping in Hong Kong is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Hong Kong real estate investments are sometimes referred to by professionals as ‘distressed’ Hong Kong real estate.

What is distressed Hong Kong property:

Hong Kong property in need of renovation
Hong Kong real estate with a change of puropose and use
Oversold Hong Kong property
Bank repossessions in Hong Kong

Put simply, long term investors in Hong Kong purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Hong Kong investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Hong Kong property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Hong Kong use a minimum profit value of 22% when looking at potential Hong Kong projects. The reason for this is because there are lots that can go wrong in Hong Kong property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Hong Kong

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Hong Kong, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Hong Kong should be entrusted to only the highest-quality agency.

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