Originally Posted by stevehem

In my view the best area is definitely Hong Kong Island, especially near Central. Even more specifically I'd recommend 'central midlevels near the escalator'. Soho West, nearby is pretty good. I would recommend an older walkup block with redevelopment potential. These places go for a slight premium over those with no potential but offer a "lottery ticket" bonus, because if someone does want to redevelop he will have to persuade at least 90% of leaseholders to sell.

It is relatively easy for a foreigner to obtain finance for this kind of purchase both from HK and overseas banks, lending up to 70% of value. The interest rates (courtesy of Ben Bernanke) that are payable mean that there is usually no problem at all with interest cover. Yields are around 6.5%.