Mixed in 1980

Chapter 371 The Prelude to the Collapse
Houses may not sell, but prices cannot be lowered!
Once prices are lowered, the market is prone to collapse, and at this point, someone needs to step in and fire the first shot in a price reduction.

During a meeting in Beijing at the time, Chen Fan explicitly stated that he would lower the prices of two properties and use this as an opportunity to create momentum for a market crash.

Old Huo said at the time, "Let me do it. I don't have many properties left. I'll take this opportunity to make a scene and get revenge for what happened back then."

The last day of September saw an official price reduction!

The discount wasn't significant, just a 10% off, and they even hung a banner on the top of the building. Even so, the sales volume was minimal.

Five units were sold after the price was reduced for three days.

These are not the main points. The main point is that Lao Huo himself hired people to unite a group of existing homeowners, who then stormed into the sales office with banners to protest.

They also invited a large number of reporters to film the scene, and then the reporters captured a scene where angry homeowners resolutely resisted the price reduction and discount, and vandalized the sales office.

The television was filled with related news that day.

The following day, newspapers and magazines followed up with reports, greatly arousing people's concerns about the housing market.

Old Huo had no choice but to hold a press conference to respond to the incident, apologize to the existing homeowners, and quickly adjust the price back to its original level, no longer offering discounts.

He also subtly mentioned, "With a three-day discount, only five units were sold, which completely failed to meet the sales target. This is a major mistake in the company's decision-making."

The media's tone shifted dramatically: five units sold in three days despite discounts, but even price reductions couldn't keep up with demand.

"The Huo family is truly like a centipede that doesn't die easily. They actually jumped out to cause trouble at this time. They should have been crushed back then."

Swire Properties' Ho Lee-tai was furious. It was an undeniable fact that houses were not selling, but this was hidden behind the scenes of public opinion.

Foreign companies have long been colluding to buy and sell among themselves, creating false transaction volumes to make people believe that the real estate market is active and not stagnant.

In the secondary housing market, prices have actually increased somewhat.

Even if Chen Fan jumps out and says the housing market is unhealthy, and the mainland says it will build low-rent housing, as long as housing prices don't drop, the market can still be maintained.

The Huo family's move is tantamount to tearing off the fig leaf from the real estate market!

Houses are not selling, and even price cuts are not enough to attract buyers. This is just the beginning. Right now, it's still in the public discourse stage. Once it hits the market, the consequences will be unimaginable.

Governor Peng Dingkang was drinking coffee when he saw the news and smashed his coffee cup: "Fuck, they're about to dump the stocks."

"The property market has collapsed, trapping all foreign investors!"

"The losses to Britain will be incalculable. Countless businesses will go bankrupt as the housing market collapses and their cash flow dries up."

"Britain, and I, will bear the blame!"

Peng Dingkang hurriedly picked up the phone and asked someone to invite reporters to hold a press conference, determined to stabilize housing prices.

The British are good at making empty promises!

Peng Dingkang described the future of Hong Kong to the media, once again bringing up the Rose Garden project. The airport is progressing rapidly and is expected to be completed in 98, which will promote the development of Hong Kong.

And they've moved out of the Hong Kong-Zhuhai-Macau Bridge project!
In an effort to stabilize housing prices, they've become shameless. The British were the core force opposing the bridge's construction in the first place, but now they're using the bridge to create momentum.

They also said they had communicated with the mainland authorities and would expedite the bridge project.

In short, Hong Kong's future is bright.

The property will appreciate in value!
Putting aside others, even Li Ka-shing, who has a relatively good relationship with British capital, couldn't stand it anymore. The British are really good at deceiving people.

"Luckily, we ran fast!"

The fact that the British were so eager to jump out actually relieved Li Ka-shing. Following Chen Fan and his group's lead was the right move.

The most important thing is that having cashed out so many properties means having a strong cash flow; even if the housing market collapses, the losses won't be too great.

Compared to others, this is a huge win!

It was unexpected that Chen Fan would dump the properties so quickly. The housing market had only just started to rise, and it had only been half a year, which was too short a period.

"When prices rise, deception works, but when prices fall, only fools can still be fooled!" Li Zhaoji chuckled, puffing on his cigarette.

The shareholders had already formed a united front during the meeting in Beijing.

Under unified command and coordination, they jointly shorted the stock market, targeting specific companies related to real estate.

When the real estate market collapses, stock prices will inevitably plummet!

In an effort to make the property market fall even faster, Li Zhaoji has already arranged for people to seize properties, and the shareholders of Hang Seng Bank are also doing so.

Buying secondhand houses!

Instead of large-scale acquisitions, they acquire small quantities at discounted prices. In today's housing market, houses are already difficult to sell, and someone will inevitably give up and sell first.

Several of Hang Seng Bank's shareholders own intermediary companies. By using these intermediaries to signal price reductions and then coordinating with media publicity, the effect is incredibly noticeable.

October has just passed, and the average price of second-hand homes has already fallen below HK$1 per square foot.

New home prices are stubbornly holding up!

Everyone understands that the real estate market is in decline. The number of listings in the secondary housing market has surged, but there are no buyers even if prices are set. To close a deal, prices must be drastically reduced.

The real estate market is in dire straits!
Zheng Shusen led Zhou Xiaoying to the real estate agency: "Manager Wang, the property has been listed for a month, and not a single person has come to view it?"

Manager Wang smiled wryly: "Mr. Zheng, your price is too high. If you want to sell it quickly, I suggest you lower the price. Everyone is lowering their prices now." "How much?" Zheng Shusen asked.

“Your two properties are in Central, a very good location. You should have a chance to sell them for HKD 8500 per square foot. If you want to sell them quickly, I suggest you sell them for HKD 7500 per square foot,” Manager Wang suggested.

"Manager Wang, did I hear that right? Two months ago, it was HK$1.2 per square foot, and now you're telling me it's going to be reduced to HK$7500?" Zhou Xiaoying stamped her foot.

Manager Wang shrugged: "That's how it is now. People who come to buy houses are all looking for a bargain. If the price doesn't come down, customers won't even consider it."

Before Zhou Xiaoying could say anything more, Zheng Shusen immediately said, "Manager Wang, let's set it at 7500 per square foot. We can lower the price further when we negotiate."

Manager Wang nodded slightly: "Mr. Zheng, rest assured, we will contact the client immediately and help you sell the house in the shortest possible time."

"Then I'm sorry to trouble you!"

As Zhou Xiaoying left the real estate agency, she looked indignant: "The price difference is too big, how could you agree to that? The loss is too great."

"We bought it for over six thousand, so we can still make a profit."

Zheng Shusen held his wife's hand and said, "Think back to last year, the media was reporting that Chen Fan was suppressing housing prices, saying that prices wouldn't rise, and that's exactly what happened."

"This year, prices skyrocketed as soon as they were told to."

"Now the media is reporting that Chen Fan is not optimistic about the real estate market. Some tabloids are even saying that Chen Fan is going to dump properties. If that's the case, the real estate market will definitely collapse."

"If we don't run now, we'll lose everything later."

"Selling the house and keeping the money in my hands is better than anything else. Even if it's only 6,000 or 7,000, I'm willing to sell it as long as someone is willing to take it."

People like Zheng Shusen are a minority.

If they can sell for 100 yuan more, most people are reluctant to sell for 100 yuan less, completely unaware that it's now a game of "who runs the fastest".

Even with a listed price of 7500, Zheng Shusen's two houses were not sold until the end of November.

After receiving the money, Zheng Shusen breathed a long sigh of relief. Although he had made some money, the past year had felt like a nightmare.

Since 1995, I've been frustrated that housing prices aren't rising. I've tied up so much money in real estate; I might as well use it to start a business.

Friends around him always tell him not to worry, Chen Fan is just suppressing housing prices, and once Chen Fan can't suppress them anymore, housing prices will definitely rise.

The housing prices went up right after the Spring Festival!
Prices changed every day, quickly exceeding 10,000. Houses in Central soon rose to 12,000, almost doubling in value. It was more profitable than robbery.

That was the happiest time for Zheng Shusen.

The last two months have been agonizing. Houses are not selling and prices are quietly falling, making him feel like he's losing money every day. Fortunately, he doesn't have a mortgage, so the pressure isn't too great.

Now that the house is sold and the dream has ended, Zheng Shusen has no interest in staying in Hong Kong and hurriedly boards a plane back to Beijing with his wife.

By the end of November, it had already started snowing in Beijing!
Two little pandas, Ping An and Xi Le, were rolling around in the snow when Yan Yin made a snowball and threw it at them, startling the two little guys so much that they stood up and raised their paws.

So cute and silly!
Yan Yin laughed loudly, stretched out her other hand, holding a chopstick with sliced ​​fruit skewered on it. The two little ones immediately became docile and ran over to eat the fruit.

When they got to the last piece, the two little ones started fighting over it, which made Yan Yin anxiously shout from the side, "Stop fighting! It's always like this..."

Ping An lost very quickly!

The little guy found a corner and started sobbing. The children all ran out to watch the fun. The little panda's crying was really funny.

Zhao Yuanyuan took out a camera and filmed the whole scene: "Ping An, cry louder, and I'll give you an apple to eat later."

"Mommy is a big bad girl!" Yan Yin came over with a piece of apple, and Ping An quickly stopped crying, sticking out her tongue and acting cute with her little owner.

Abbastian can't appease a red panda!

Zhao Yuanyuan filmed this scene, then turned off the camera and shook her wrist: "It's still more comfortable to stay at home. It's a pity it's snowing again, so it's not good to go out for a stroll."

"Sister-in-law, you can go climb the Great Wall."

Guan Xiaoyu brought her children over: "The Great Wall is covered in silver after the snow, and the scenery is beautiful. I'm even thinking of going to Huangshan to see the snow."

"Let's go there when the kids have their winter break."

Zhao Yuanyuan put down the camera and patted Zhou Jingshu's head: "Go play with your brother and your younger brother. Go inside and play, don't get cold."

The little girl smiled sweetly and ran off to find Yan Che.

Zhao Yuanyuan looked at Guan Xiaoyu: "Your brother was just saying that the money from selling the house has been transferred to your account, and you can buy it back in two years."

"You bought it back?" Guan Xiaoyu exclaimed in surprise.

The previous 2000 apartments were all 30 square meters, priced at HK$7000 per square foot, with a total transaction value of over HK$46 billion.

I used to think that collecting rent was already very profitable.

Only after selling the house did he realize that the rent he earned was just a small fraction of his wealth, and he suddenly became a multi-millionaire. In mainland China, he would probably be among the top five millionaires.

Cash is definitely the best choice!

Zhao Yuanyuan laughed and said, "Of course we have to buy it back. Hong Kong property prices are collapsing. They should bottom out in a couple of years. It won't cost much."

“If you don’t like starting your own business, just buy a house and become a landlady. In the future, if Jing’an and Jing Shu want to do something, you can support them.”

P.S.: One more chapter coming soon, please vote!
(End of this chapter)