Targeting Mainland Chinese Tourism – The "345" Strategy to Success in Shop Investment
According to Yung-Ching’s statistics, the number of retail shop front transactions completed in January 2008 was a massive 70% increase over previous month, December 2007. The average price per ping was around 0.9 Million NTD, a 5% increase. The most expensive retail shop fronts in Taipei City at the moment are in the Jhongsiao SOGO business district at between 3.7 ~ 4.8 Million NTD per ping. This is still significantly lower than the 7~9 Million NTD per ping compared by the Mong Kok Centre in Hong Kong.

The accelerating pace of liberalization in cross-strait trade and commercial policy have seen many shop landlords revise the prices upwards. The buyers have begun accepting the price increases as well. Under this circumstance, those investing in retail shop fronts should follow the "345 Principle": In Taipei City, the downtown MRT business districts enjoy large crowds and shops are in short supply. Examples included the Jhongsiao SOGO business district, the Nanjing E. Rd. and Taipei Arena business district. If the ROI (Return On Investment) is between 2.5% and 3% then this is a good opportunity to invest; As for the shops near suburban MRT stations such as the Roosevelt Rd. Gongguan business district, the Jhongshan N. Rd. boutique business district, Yonghe-Dingxi business district, Shihlin night market or Taiwan Normal University night market, while the crowds are smaller than the downtown department store business districts, their excellent access and large commuter population means that a ROI of 3~4% should be acceptable. As for other regions, the ROI should be set between 4~5% to reduce risk and ensure profitability.