Hunting for an apartment in Hong Kong with a modest budget of $500,000 may seem like a futile exercise, but it is possible to find a place at that price. It would be just about enough to buy a mini-sized flat in an old building.
The interesting point about mini-sized flats in old buildings is that they can come with a pleasant surprise, such as a garden, something almost unheard of in most standard units in the city.
Mini-sized flats are beginning to catch the eye of veteran investors who are betting on the upside potential of such premises after renovation.
'Most of the buyers pay in cash,' said Patrick Chow, head of research, Ricacorp Properties.
One investor made a gross profit of $120,000 three months after upgrading a run-down 700-square-foot, village-style apartment in Cheung Sha, Lantau Island. The investor bought the unit for $170,000 and sold it for $320,000, after spending $30,000 on renovation.
'The investor bought it at half the market price - a rare opportunity,' said Amy Lee, an agent at Good View Property, Lantau Island. 'The prevailing price for a unit like that is around $350,000.'
I recently visited small property agencies in Wan Chai and Pokfulam, presenting myself as a potential buyer with a budget of $500,000.
