Source: Securities trader China
What did Li Ka shing smell when he made intensive moves?
Li Ka shing frequently "sells buildings at a discount", causing market attention and heated discussion. At the latest shareholders' meeting, Li Zeju, chairman and general manager of Changjiang Industrial Group, responded that "the pricing of real estate cannot be generalized. The pricing is determined according to different conditions of each property, including location, transportation, surrounding environment, and the market environment at that time."
Recently, three new housing projects launched by Cheung Kong Industrial Group in Hong Kong were all sold at a discount, with price reductions ranging from 23% to 32%. Changshi once said to the public that the purpose of selling new stocks at a discount is to attract people who are interested in local property to take the opportunity to enter the market.
Analysts pointed out that the Hong Kong real estate market has rebounded rapidly since the Hong Kong real estate market was "hot" this year, and developers represented by Changshi seem to be seizing the opportunity to clear inventory. It is worth noting that since May, the heat of the Hong Kong property market has dropped. On May 25, the Hong Kong Business Daily reported that the Central Plains City Leading Index CCL, which reflects the performance of Hong Kong's second-hand property market, recently reported 144 points, down 1.43% weekly, hitting a new nine week low.
Li Ka shing makes a move
Changjiang Industrial Group, founded by Li Ka shing, frequently "sells buildings at discount", which has attracted market attention.
At the latest shareholders' meeting, Li Zeju, chairman and general manager of Changjiang Industrial Group, responded that "the pricing of real estate cannot be generalized. The pricing is determined according to different conditions of each property, including location, transportation, surrounding environment, and the market environment at that time."
Li Zeju said that Hong Kong's local property market has always had a rigid demand, and its long-term development is still supported. After the "withdrawal", Hong Kong's property market will continue to be dominated by housing policies and interest rates. However, he also said frankly that at present, the land price of real estate projects, together with the high construction costs, and the interest rate has been kept at a high level, so "it is not easy to obtain annual double-digit returns from the real estate business today".
As always, Li Zeju is optimistic about Hong Kong's economy. When asked about the future investment direction, he replied that as long as high-quality assets with ideal returns are available, they will be considered whether in Hong Kong, the mainland or other places; At the same time, as an international financial center, Hong Kong has more international enterprises and international family offices. Hong Kong's market position as an international financial center has been consolidated, and Hong Kong's economic strength will also be better, which is conducive to long-term development.
In late May this year, Changshi's residential project "# LYOS" of Hong Kong Hongshui Bridge in the northwest of the New Territories was put on public sale. Including 14 groups of layered building units and 14 groups of garden duplex households.
From the price point of view, the unit price of the layered building will have a maximum discount of about 25% compared with the initial public offering price, while the garden duplex households will have a maximum discount of about 32%.
Since the Hong Kong real estate market was "hot" this year, the Hong Kong real estate market has rebounded rapidly, and developers have also seized the opportunity to clear inventory. The properties under Changshi Group are "sold out".
In April this year, Changshi Group cooperated with Hong Kong Railway to launch the first round of Blue Coast 3B at Huangzhukeng Station on the south bank of Hong Kong Island, which sold 422 groups at the "bottom price". 406 groups were sold in the first round, accounting for 96%, becoming the new market with the largest number of houses launched in a single day after Hong Kong's "removal of spicy". At the same time, the average transaction price of Blue Coast units sold in the first round was about 18.3 million Hong Kong dollars, and nearly 7.5 billion Hong Kong dollars were cashed out, which was the highest single day cashed out amount since April 2013.
Another development of Changshi Group, the "Mingri · Jiudu Mountain El Futuro" project located in the traditional luxury residential area of Shatian Banshan, had sold 194 groups and realized more than HK $2.9 billion as of April 21.
From the price point of view, the above two properties are sold at a "discount", of which the average price of Blue Coast 3B on the south bank of Hong Kong Island is 21900 Hong Kong dollars/square foot, while the cost of the project is about 28000 Hong Kong dollars/square foot; The average price of the project is significantly lower than the price of other buildings in the same area, and it is almost 70% lower than the second-hand house prices around. In addition, the pricing of nine groups of units in the "Mingri Jiudushan El Futuro" project was also significantly reduced by 23% to 32%.
Changshi once said to the public that the discount selling of new market is also to attract people interested in local property to take the opportunity to enter the market.
Hong Kong property market fever falls
In fact, since the end of February, the atmosphere of Hong Kong property market has reversed, and the trading volume of new markets has risen significantly.
According to the data of Meilian Property Research Center, in March, Hong Kong recorded more than 4100 first-hand transactions, a sharp increase of 14.6 times on a monthly basis; The amount recorded more than 42 billion yuan, an increase of nearly 11 times on a monthly basis. If compared with the monthly registration data of the Land Registry, the transaction volume in March also reached a new high after 1998, and the amount was a record high since 1996.
The primary housing market in April continued to improve. According to the data of Centaline Property, about 1852 transactions were recorded in the primary market of Hong Kong in April. By the end of April, developers had sold about 6044 cases in total throughout the year, about 56% of 10790 cases in 2023.
But in May, the heat of Hong Kong's property market fell back. On May 25, the Hong Kong Business Daily reported that the Central Plains City Leading Index CCL, which reflects the performance of Hong Kong's second-hand property market, recently reported 144 points, down 1.43% weekly, hitting a new nine week low.
It was reported that the new market continued to sell at a low price to grab customers, the pressure on the second-hand property market remained unchanged, and the index still did not reflect the impact of banks' tightening mortgage. It is believed that CCL will further fall below the 143 point level. It is expected that the next test will be 140 points at the end of June, and Hong Kong property prices are expected to fall by about 5% in the first half of the year.
In addition, according to the latest data released by Centaline Real Estate, 439 groups of appointments were made in the top ten housing estates this weekend, down 11.8% by week, hitting a new low in nearly 12 weeks.
However, the industry still has expectations for the future of the Hong Kong property market. Chen Yongjie, vice chairman of Centaline Real Estate Asia Pacific Region and president of Housing Department, believes that although there is no new good news in the market recently, and there is a large-scale on board sale that has put pressure on the second-hand market, the mainland continues to introduce favorable policies to stimulate the property market; The Hong Kong stock market has repeatedly hit this year's high, and the daily trading volume of the big market has hit a new high for nearly a year and a half. All these have a positive impact on the Hong Kong property market. The outlook for the Hong Kong property market is still optimistic.
In terms of housing prices, the overall "removal of spicy" will also help stabilize prices. According to the data of Midland Property in Hong Kong, if calculated in a single month, the "Midland Property Price Index" in April this year rose by about 1.2% month on month, which is the first time that it has stabilized after falling for 11 consecutive months.
Midland Property Hong Kong believes that the future trend of property prices must depend on the recovery of Hong Kong's economy, as well as the schedule and trend of interest rate cuts.
Editor in charge: Chen Lixiang
Checked by: Liu Rongzhi
