Mainland Investor Acquires Wan Chai Studio for HK$7.9M with 3.3% Rental Yield
On.cc · 1 SOURCESabout 3 hours ago5 MIN
Summary
A mainland investor has purchased an open-plan studio unit at the Wickes II (喜滙) development in Wan Chai for HK$7.9 million, after negotiating a reduction of HK$100,000 from the original asking price. The 329-sq-ft unit, located on a middle floor of Block 2, is expected to generate a rental yield of approximately 3.3 percent based on a projected monthly rent of HK$22,000. The original seller, who purchased the property from the developer in 2013 for HK$6.64 million, accumulated a capital gain of roughly HK$1.26 million, reflecting a 19 percent increase in value over approximately 13 years .
Key Points
- The property at Wickes II (喜滙) Block 2 middle floor, Unit L, spans 329 square feet in saleable area with an open-plan layout, transacting at HK$7.9 million or approximately HK$24,012 per square foot .
- The buyer is a mainland investor seeking rental income, with the transaction generating an expected rental yield of about 3.3 percent based on market rent of HK$22,000 per month .
- The original owner purchased the unit brand new from the developer in 2013 for HK$6.64 million, yielding a profit of HK$1.26 million after 13 years of ownership .
- A two-bedroom unit at Deep Bay (深灣軒) in Ap Lei Chau, measuring 483 sq ft, sold for HK$8.85 million to a trade-up buyer, with the previous owner gaining HK$5.9 million after holding for about 19 years .
- A 1,240-sq-ft three-bedroom with helper's quarters at Regency Heights (禮頓山) in Happy Valley fetched HK$53.8 million, with the original buyer profiting approximately HK$33 million since 2007 .
Why It Matters
This transaction illustrates the continued interest from mainland buyers in Hong Kong residential properties as investment vehicles, drawn by the potential for stable rental income. The approximately 3.3 percent rental yield aligns with broader market trends showing enhanced appeal of Hong Kong real estate as high-interest-rate environments persist elsewhere. Additionally, the nearly 19 percent appreciation over 13 years underscores the long-term capital appreciation potential of well-located urban residential properties in Hong Kong .
This transaction illustrates the continued interest from mainland buyers in Hong Kong residential properties as investment vehicles, drawn by the potential for stable rental income. The approximately 3.3 percent rental yield aligns with broader market trends showing enhanced appeal of Hong Kong real estate as high-interest-rate environments persist elsewhere. Additionally, the nearly 19 percent appreciation over 13 years underscores the long-term capital appreciation potential of well-located urban residential properties in Hong Kong .