Entering August, real estate practitioners in Xiangjiang are in mourning. The middle class is selling, real estate speculators are selling, and developers are also selling. And every one of them has a tearful sale, and the price has dropped again and again.
The peak average price per square foot at the beginning of the year was around HK$1,000, but now it has dropped to around HK$700. Especially in Sham Shui Po, East Kowloon, Sha Tin, Wong Tai Sin, Tsuen Wan and other places, house prices have almost dropped by half.
Not to mention that many small real estate companies cannot handle it, some well-known real estate companies are now facing huge crises.
Among those engaged in real estate in Xiangjiang, apart from several eccentric real estate groups owned by Li Jianhui, there are few real estate companies that do not seek bank financing and loans, and the leverage ratio is quite high.
Now that housing prices have plummeted, the market value of the company has also plummeted. On the one hand, there are few customers for development properties and funds cannot be withdrawn. On the other hand, banks are demanding payment.
It is not just developers who are anxious now. The Bryan government is also anxious. Once the property market continues like this, countless real estate companies will close down and the unemployment rate in Hong Kong will rise rapidly. This is not conducive to the stability of Hong Kong, especially in such a special period.
period, neither the Bryan government nor London wanted to see.
And because of the sharp drop in housing prices, land prices in Xiangjiang have also plummeted. At the land auction in July, the auction prices for similar plots of almost the same area were less than half of last year, and the main bidders were those owned by the Tung Wah Association.
Real estate companies, especially Xinjian Real Estate and Hutchison Real Estate.
You must know that the biggest source of tax revenue for the Xiangjiang government is from land transfer. If the situation cannot be improved, the government will have less and less spending in the future.
In order to improve the current situation, on the afternoon of the Chinese Valentine's Day, Chief Executive Kesos held consultations with the main representatives of the Hong Kong business community who arrived in the 306 conference room of the Peninsula Hotel.
"Thank you very much for taking the time out of your busy schedule to attend this meeting. Due to some factors, the property market, stock market and even the entire economy in Hong Kong are in a slump. I specially invite you here today because I want to discuss with you the future of Hong Kong's economy.
Regarding the development of the segment, if you have any opinions on this, you can put forward it.”
The representatives of the real estate developers present spoke as soon as they finished speaking in Kesos. Although the expressions expressed by each party were different, the central idea was the same, that is, they hope that the government can intervene to slow down the current housing prices.
Representatives engaged in construction and building materials hope that the government will increase investment in roads, subways, and public buildings in Hong Kong to stimulate Hong Kong's economy.
Representatives of some research and manufacturing enterprises headed by Wang Haichuan hope that the government will lower the price of industrial land and introduce more policies that are conducive to the development of communications, semiconductor and other industries, especially to support the major theaters in Hong Kong to increase the opening of majors in this area, so as to
Xiangjiang cultivates more technical talents.
Financial elites led by Li Fuzhao hope that the government will relax the standards for foreign companies to list in Hong Kong, lower their profit standards in some high-tech industries, and attract more companies to come to Hong Kong to list.
Representatives of shipping companies headed by Dong Haoyun hope that the government will introduce more measures that are conducive to shipping development and increase cooperation between Hong Kong and the mainland.
Some representatives, led by the chartered ship king, hope that the government will introduce favorable policies to support Xiangjiang in becoming a bridge between the mainland and the West, and make Xiangjiang a transit point for trade between the mainland and the West.
Some representatives, headed by Li Jianhui, hope that the government will organize a delegation from the Hong Kong business community to visit Japan, South Korea, Taiwan, Southeast Asia, England, Australia, Canada, Germany, France, Italy, China, and other places to inspect and cooperate with each other to assist Hong Kong companies in developing more markets.
“I understand everyone’s opinions, but many policies take a long time to take effect, and our most important thing now is to strengthen the confidence of Xiangjiang citizens in the future of Xiangjiang.
In this regard, I hope that some companies can increase investment in Xiangjiang, especially some high-end manufacturing companies.
As for the government stepping in to slow down the market, don't think about it. If real estate is to get out of the current predicament, it still needs economic development to put money in the pockets of Xiangjiang citizens and allow them to see the future.
In terms of basic public facilities, everyone should not expect it for the time being. There are currently many lines on the subway under construction at the same time, and many universities are also under construction on the school side. The government now has a financial gap and is simply unable to increase investment in this area.
invest.
Of course, if any of you plan to invest in a subway or build a university, our government will approve it and help your university obtain the qualifications to issue degrees, which are recognized by Commonwealth member states."
At this time, everyone is eager to have a little more cash in their hands. Where can they find the funds to invest in this.
Li Jianhui is not short of money, but currently he has established as many as five universities through sole proprietorships and joint ventures, and subways are already under construction in several of his key areas. He has no need to invest in other lines.
So much so that there was a moment of silence after Xos's words fell. I'm afraid it would be quite difficult for Xos to improve the current situation.
In fact, the business elites present are very aware of the fundamental problems currently facing the economy of Xiangjiang. If that matter can be determined, the citizens of Xiangjiang will naturally have confidence in the future, and development will not be a problem at all.
It's just that this matter is a game played by big powers, and they, the little shrimps, can only passively wait for the results. In their hearts, they only hope that it can be resolved peacefully to avoid the destruction of their own foundations that have been built for decades or even hundreds of years.
Xosos obviously didn't want the scene to be quiet, so he spoke out: "Mr. Li Jianhui, because of your layout, except for the slight impact on Tianshui City, your industry has suffered the least damage in this round of crisis.
And recently, your industry has been actively exploring the Baodao and Southeast Asian markets. However, apart from some continuation projects in the past two years, Xiangjiang has not invested in new projects this year. I wonder if you can invest in some projects this time.
Xiangjiang citizens have some confidence."
Li Jianhui was originally prepared to stay out of the matter, but Xosos had already named him, so he could only say:
"Although I have not developed any new projects this year, you all know that my projects currently under construction in Xiangjiang include Tin Shui City, several Tai Defeng Plazas, Tai Lam Tunnel, Fai Hung City, Phoenix Industrial Park, Whampoa Gardens, Tseung Kwan O and O
Garden, Xiangjiang Aviation Base, Xiangjiang Electric Power Plant, Xiangjiang Gas Storage Center, etc.
Many universities including Xin Jian, Heung Kong Finance and Economics, and Heung Kong School of Architecture, as well as six office buildings including Xin Jian, Jiayi, Huihong, Tesco, Wheelock Land, and Hutchison Real Estate are accelerating the construction.
In terms of investment alone, my industry this year is still ranked first in Hong Kong, and I can't find any new projects to invest in."
It's okay if Li Jianhui doesn't mention it. Everyone present is a little autistic when it comes to mentioning it. Their own property is nothing compared to Li Jianhui's.
For the time being, Xosos could not find any projects for Li Jianhui to invest in. As for office buildings, Li Jianhui already owns Wheelock Building, Whampoa Building, Jiayi Building, Federal Building, and International Building, and is currently building six office buildings at the same time.
The building is sufficient to meet the needs of the Xinjian Department.
As for schools, Li Jianhui also owns enough, and Li Jianhui obviously will not take advantage of them. If some projects are not beneficial to the Xinjian Department, Li Jianhui will not invest in them.