A picture is worth a thousand words. Why Hong Kong’s mum and dad investors are looking abroad.

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A picture is worth a thousand words. Why Hong Kong’s mum and dad investors are looking abroad.

September 21, 2015 / By Denis Ma

With local housing prices having more than doubled since the Global Financial Crisis and government policy making it difficult to acquire investment properties, Hong Kong’s mum and dad investors are increasingly looking for opportunities in overseas markets. And with the HKD riding on the coattails of a strengthening greenback, properties in countries such as Canada, Australia, Japan and the United Kingdom are looking cheaper by the day.

Aside from the record high prices, many investors have become jaded over what they are able to buy in the local market with their hard earned money. The average price of a 400-sq ft apartment in Hong Kong today, for example, will set buyers back a little over HKD 5.5 million (USD 700,000). Flats on offer at this price point, which is typically the amount most mum and dad investors would normally target for investment properties, are not only small—and getting smaller!—but also leave a lot to be desired when it comes to layouts; flats with tiny kitchens or lavatories where users have difficulty closing doors, comes to mind.

Similar sized flats in other parts of the world often have higher ceilings, more rectangular layouts and feature floor-to-ceiling windows with open views. These characteristics make such properties much more appealing to investors, especially those who are buying for self-use; whether it be a residence for their children whilst studying abroad or for future retirement.

While HKD 5.5 million is not a small sum of money, for that amount, there are plenty more options to investors available. Below are just some examples of the properties being marketed by our International Properties team around the world at this price point.

Of course, there are many other factors involved behind decisions to invest in residential properties abroad. Potential for capital gains, higher rental yields and even demographic trends ultimately remain as the key factors behind many decisions. But as they say, a picture is worth a thousand words.

Picture2_18Sep2015 Woodberry Down, London N4
Studio (414 sq ft + 53 sq ft balcony) from £358,500 (HKD 4.28 million)
1 Bdr (525 sq ft + 53 sq ft balcony) from £437,000 (HKD 5.22 million)

Picture3_18Sep2015 City Island, London E14
Studio (424 sq ft + 69 sq ft balcony) from £325,500 (HKD 3.88 million)
1 Bdr (690 sq ft + 72 sq ft balcony) from £451,000 (HKD 5.38 million)

Picture4_18Sep2015 The Parkhouse Nihonbashi Hamacho, Chuo-ku, Tokyo
2 Bdr (605 sq ft + 125 sq ft balcony) from ¥57.1 million (HKD 3.67 million)
3 Bdr (800 sq ft + 153 sq ft balcony) from ¥72.8 million (HKD 4.69 million)