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How long did you wait before buying a place in HK?

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  1. #41

    Join Date
    Jun 2018
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    Quote Originally Posted by freeier:
    overall tricky.. now the news and the papers seem to be unhappy with the chinese tourism visitors that come in but don't spend much.. but isn't it actually the norm for visitors to pick good deals when they travel instead of splashing money ridiculously.. from 2003 till 2018.. the chinese visitors were reckless in their spending and that boomed the HK tourism/retail industry.. money was too easy to be made..

    now that everyone has normalised.. just like how we spend reasonably when we visit japan or etc.. HK just need to readjust quickly.. the landlords can choose to hold on to empty units (see how many are there still in TST or near CWB/WC) and see if the annual 5% holding cost is meaningful...
    Yeah totally agree it isn't commercially sustainable without the mainland flows pouring in, but the landlords are generally fairly cash rich so can afford empty units for a good long while. Meanwhile the valuers and agents are all part of the same speculative gravy train, and with the appraised values (including on various company balance sheets and REIT prices) dependent mainly on the on paper booked rental yield it isn't going to find a healthy equilibrium quickly.

  2. #42

    Join Date
    Nov 2005
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    Quote Originally Posted by Peaky:
    Yeah totally agree it isn't commercially sustainable without the mainland flows pouring in, but the landlords are generally fairly cash rich so can afford empty units for a good long while. Meanwhile the valuers and agents are all part of the same speculative gravy train, and with the appraised values (including on various company balance sheets and REIT prices) dependent mainly on the on paper booked rental yield it isn't going to find a healthy equilibrium quickly.
    some landlords are cash rich, but most are not.. look at the leverage ratio of even the largest landlords and you can tell... whether cash rich or not, we are talking about holding cost of 5% p.a... you hold it for the hope of selling the unit 5% higher in 1y, 10% higher in 2 years, etc... there will be people with rationale thinking choosing what's right. The market madness will usually last longer than what anyone of us can imagine and the subsequent correction when one gives in and joined the madness is usually the most painful ones..
    Gollygordon likes this.

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