Wednesday, February 19, 2014

Hong Kong Property - Tai Kok Tsui

On Tuesday, I had the good fortune to be provided with a brief tour of Tai Kok Tsui/Olympic area by Dr Bubb from GEI. While I had some familiarity with the area, it was a very informative tour and I have a much better understanding of how rapidly the area is gentrifying and the potential for that process to continue.

From an investment perspective, if it were not for the double stamp duty, I would have been sorely tempted to do further due diligence into some smaller residential units and smaller street level retail units   in older buildings. The combination of affordability in absolute terms and the process of gentrification are very appealing. Unfortunately, at this time the combination of low yields and punitive stamp duties are something of a deterrent.

I will be keeping a close eye on this area. If prices revert to levels which provide decent real returns and/or the anti-investment stamp duties imposed by the HKSAR government are removed, I would put this area at the top of my list of places to invest.

For those interested in this area, Dr Bubb has created a thread on the GEI website.

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