Hong Kong 1980: The Savage Era

Chapter 505 Chapter 507 [Inevitable]

New World Development Company has the New World Centre in Tsim Sha Tsui, the Convention and Exhibition Plaza in Wan Chai, and a large number of luxury homes in Mid-Levels (owned by Wheelock), but it can only be regarded as a large-scale real estate developer, not a large-scale development real estate developer.

In a serious sense, there are only four large real estate developers in Hong Kong, namely, Siu On Group, Cheung Kong Holdings, Sun Hung Kai Properties and Henderson Land Development. They account for more than 4% of residential building sales in Hong Kong.

However, New World Development has fallen behind and does not have sufficient reserve land. It is unlikely that it will be able to reserve enough land for development in the future.

Coupled with Zheng Jiachun's huge investments in commercial buildings and hotels, the current situation is no longer as good as it was ten years ago, or even five years ago.

"30 billion!" Chen Zhilong raised the sign quietly. This was still far from the reserve price given by the boss.

As prices continued to rise, Cheung Kong Holdings, Nan Fung Group and Sino Properties all gave up their bids.

Cheung Kong Holdings has always believed in "goods are like wheels" and does not like rental properties. It is also a large-scale real estate developer and must consider whether this piece of land is worth more than 30 billion.

As for Nan Fung Group, it is just a small to medium-sized real estate developer. Although it has some "small money", it is not enough for this auction. Sino Properties is increasingly unable to keep up with the pace and has now fallen behind.

This left only Wharf Holdings and Siu On Holdings, and the bidding soon exceeded HK$32 billion, with a momentum of exceeding HK$35 billion.

Ever since the death of the ship chartering king, Wu Guangzheng has been truly in power in the Wharf Group. He has been thinking about making the Wharf Group a large-scale real estate developer in Hong Kong. He became even more anxious after developing Times Square in Causeway Bay.

Other real estate developers were naturally happy to watch the show. Listening to the ever-increasing bids, they all felt that it was a wise choice not to follow suit.

"33 billion!" Chen Zhilong continued to raise his hand and couldn't help but calculate in his heart. Fortunately, the boss gave a bottom price, otherwise it would be really difficult to follow up.

Chen Zhilong thought that Wu Guangzheng was crazy. He was fighting to the death with Zhaoan Group without even considering his own weight.

"33.4 billion!" Wu Guangzheng took a deep breath and bid decisively.

After half an hour of bidding, the auction price reached HK$38 billion. Such a high price made fellow real estate developers excited, as it proved that the real estate market would continue to rise.

Once the news gets out, real estate stocks in the stock market should rise again.

Wu Guangzheng fell silent, and was indifferent to the auctioneer's second drop of the hammer.

"Sold for 38.3 billion!" the auctioneer almost yelled, with a gleam in his eyes.

When Chen Zhilong heard the word "deal", he immediately breathed a sigh of relief, and immediately stood up and clasped his fists towards Wu Guangzheng, indicating that he accepted the deal.

Wu Guangzheng also clasped his fists, but in his heart he comforted himself, "Including the construction costs, the total cost will probably exceed 60 billion Hong Kong dollars. 60 billion Hong Kong dollars is enough for the group to buy a large number of properties."

The construction cost of Times Square in Causeway Bay was only HK$24 billion, but it has 240 million square feet of rental area, which will generate nearly HK$10 billion in rental income each year.

In such a comparison, Wu Guangzheng naturally felt that the land worth 40 billion Hong Kong dollars was not worth it.

When the news came back to Luo Qihong, he approved of the bid price and encouraged Chen Zhilong and Kang Wenyi to keep up the good work.

At this time, in the office of Zhaoan Group.

He was browsing the report document, which had Chinese and Korean text on it, which seemed to be translated into each other.

South Korea is currently in a period of rapid economic development. The KOSPI index has risen to more than 600 points. The current average daily trading volume of the stock market is about 1851 billion won. The market value of the entire stock market is likely to exceed 110 trillion won, accounting for 58% of GDP.

Luo Qihong really didn't know much about the Korean economy, he just knew some chaebols, so he could only use his own ability to judge the investment in Korea, and with the help of the think tank. In February next year, the Korean government will change, but the think tank has already analyzed Kim Young-sam, and this president will definitely stimulate the economy, so this is also Luo Qihong's opportunity.

And according to gossip sources, South Korea will relax foreign shareholding restrictions next year, allowing foreign investors to increase the upper limit of a single company's shares from 10% to 12%.

2% may seem like a small amount, but it is actually very beneficial. For example, the bosses of super large listed companies only hold a few percent of the shares, which shows that 2% is enough to influence the ownership of control.

"Are you planning to invest heavily in South Korea?" Bai Jinyan asked from the side.

Although De'an Securities Investment Company, the most important company of Zhao'an Group, is in her hands, if she does not seize the opportunity to expand, other companies will catch up.

Luo Qihong pondered and said, "I just plan to increase investment. If the information in the document is true, then we can make some money in the Korean market, especially in technology and heavy industry."

Since you don't understand the economic situation very well, don't bet too much on it. There will be many opportunities in the future, so there's no need to force yourself to do it all at once.

Bai Jinyan felt a little strange. This seemed a little different from Luo Qihong's previous style. It seemed that South Korea's economic growth period was not long, and the heavy investment was difficult to withdraw in time.

"Such a small country lacks various resources, and its economy is now on the rise. It is difficult to do OEM. It should take the economic route of high-tech, financial and other service industries." Bai Jinyan nodded and said.

"The group can also invest some money, and it's best to use the name of the American branch." Luo Qihong said, "The group will sweep the three chaebols, SK, Daewoo, and LG. My private company will sweep Samsung and Hyundai. You can decide for yourself about the other companies. It's best not to invest more than 3 million US dollars."

"Do you want to use the Americans' tiger skin to scare the Koreans?" Bai Jinyan asked with a smile.

"What's the point of threatening? It's just more convenient." Luo Qihong said with a smile, admitting it was impossible.

South Korea's economy has always been equally shared between the government and the chaebols, at least that was the case for now, but it has since evolved into a economy dominated by the chaebols.

Luo Qihong didn't want to be a chaebol in a place like South Korea. The place was too small and very xenophobic, and he could only make profits through dividends.

The land market in the fringe areas of Kowloon city suddenly became prosperous. Zhaoan Group acquired 38.3 square feet of land for HK$28 billion, with an average price of HK$1.36 per square foot, setting a new record for land prices in the fringe areas of Kowloon city.

At the same time, it also brought the benefit of rising stock prices to Zhaoan Real Estate Company, allowing its market value to exceed HK$700 billion.

Some media outlets made a careful analysis and found that based on the current land price, this piece of land could generate a profit of HK$30 billion in the future, which made the news even more popular.

Now that Phase II of Central Exchange Square has been completed, the pre-leasing rate is as high as 90%, and the rent has increased to 65 yuan/square foot/month, setting a record in Asia.

This move naturally prompted the "landlords" in Central to raise rents, making Hong Kong's real estate market even more prosperous.

In fact, the rent of commercial buildings in Central is generally more than HK$50 per square foot. For example, the rent of Financial Plaza owned by Dehe Real Estate Company is HK$54.

The rent for shops in Central is more than 100 yuan, which is a bit jaw-dropping.

The shop rent near Canton Road in Tsim Sha Tsui is even more expensive than that in Central. This is also the reason why Wu Guangzheng of Hutchison Whampoa Group dares to challenge the Siu On Group.

Such a prosperous market has allowed real estate developers and speculators to make a fortune, even more than before the Hong Kong government cracked down on them.

Real homebuyers are already confused and have no other choice but to buy a home quickly. Instead of hoping that the Hong Kong government can regulate the market, they might as well buy lottery tickets.

(End of this chapter)