Hong Kong 1980: The Savage Era

Chapter 105 [Luxury House in Mid-Levels]

Mid to late March
Major newspapers in Hong Kong have published reports on the three-tier financial system that the Hong Kong government is going to implement. The Hong Kong government wants to use this system to strengthen regulation of financial companies, thereby affecting the overheating of local cities.

The current Hong Kong government relies on auctioning government land to balance its fiscal revenue and expenditure. It is certainly unwilling to let the land market go into a slump, but it cannot ignore the proposals of those legislators, so it chose an indirect solution.

Luo Qihong put down the newsprint, his face looking quite heavy. In his previous life, this system brought about great side effects, causing a sharp drop in the short-term deposits of the Hong Kong Financial Company and accelerating credit contraction.

Financial companies in Hong Kong are not only engaged in the purchase and sale of residential units, shops and other properties, but also participate in various investments, the latter of which make use of users' short-term deposits and even use high leverage.

Before the three-tier financial system was announced, finance companies could still rely on the circulation of short-term deposits to implement high-value investments. However, the promulgation of the three-tier financial system will inevitably break this cycle. Finance companies must withdraw those investments that have misappropriated short-term deposits. Thus, one of the finance sources of the finance companies will be cut off, which may cause other problems for the finance companies.

In the short term, there will not be too many problems in the cities, but Luo Qihong believes that he should speed up development, perhaps he can avoid this problem.

Suddenly, Luo Qihong's eyes widened and he quickly picked up the newspaper, which actually published the news that "Jide Real Estate Company is for sale". Haofeng Real Estate Company holds 53.7% of the shares of Jide Real Estate Company, and the current market value of Jide Real Estate Company is 1.17 million yuan, but Haofeng Real Estate Company dares to ask for 7 million yuan.

Some time ago, the market value of Jide Real Estate Company was 6888 million yuan and the share price was 1.68 yuan, but the Lin Zuhui family desperately hyped it up and pushed the share price up to 2.85 yuan, which made Luo Qihong dumbfounded.

It turns out that these wealthy Hong Kong families would take such extreme and violent measures to raise the share prices of their own companies. However, doing so also has some side effects, namely that it is difficult to ensure the stability of high stock prices.

Of course, Luo Qihong also contributed a lot here. He bought a large number of Jide Real Estate shares at the beginning, which indirectly helped the rise of its stock price.

"Is this about the acquisition of Hong Kong Electric by the Hong Kong Land Development?" Luo Qihong touched his chin and muttered to himself.

In fact, it is not a wise choice to sell Jide Real Estate Company now. The seller cannot acquire it at an unrealistic stock price because it would be a loss-making deal.

Therefore, the price of 7 million asked by Haofeng Real Estate Company is unlikely to be obtained.

Lin Zuhui slowly sells Jide Real Estate Company so that the interests of Haofeng Real Estate Company can be maximized. Luo Qihong understands this principle, and it is impossible for Lin Zuhui not to understand it.

Luo Qihong smiled and said, "It seems that this stock price can't be maintained for long. It's better to have 'safe and sound'."

So Luo Qihong walked to the phone, dialed Sun Hung Kai Securities, and found Bai Jinyan, "It's me! Luo Qihong! Help me sell all the shares of Jide Real Estate Company, and try not to sell them below 2.8 yuan per share."

After getting Bai Jinyan's answer, Luo Qihong hung up the phone.

Zhaoan Real Estate Company holds 779 million shares of Jide Real Estate, with an average purchase price of 1.74 yuan, spending 1355.46 million yuan, of which the loan from Sun Hung Kai Bank is close to 1 million yuan, and it is expected to make a profit of more than 7 million yuan.

The reason why there was a loan from Sun Hung Kai Bank was that most of the funds that Siu On Real Estate Company had held in Sun Hung Kai Securities had been used to buy shares of Heung Kong Electric Company.

No. 48 MacDonnell Road, Mid-Levels, Hong Kong

This is a 38-storey high-end residential building covering an area of ​​3.5 square feet. There are 2-4 residential units on each floor, and the unit area is not less than 1600 square feet.

Weishan Garden is located in Central, and the Mid-Levels is a wealthy area, so the environment and infrastructure are naturally very good and complete.

The real estate agent in a suit and tie introduced the unit in the residential building to the Luo family with a smile on his face. "The area of ​​this residential unit is 1720 square feet, and the price is 1460 yuan per square foot. The total price is 251.12 million yuan. But now our company is having a promotion, and we can give you a 95% discount, which is 238.5 million yuan. After removing the decimal, it is 238 million yuan." Luo Zegui and the other two looked at each other in surprise. This price was really staggering. They might not be able to afford this house in their entire lives.

When Luo Qihong mentioned moving to a new house a few days ago, they thought he meant moving to a newly built residential building nearby. They also said they lived very well in North Point and did not need to buy another house.

However, Luo Qihong successfully silenced the three by talking about the living environment and other aspects. However, Lin Ya and Luo Zegui still planned to refuse and were ready to act according to circumstances on the day of buying the house.

At this point, if they hadn't considered their son's face, they would have wanted to turn around and leave immediately. The price was beyond their understanding.

In fact, this price is relatively expensive. More than 2 million can buy half a villa in Deep Water Bay, but can only buy a luxury unit in Mid-Levels.

"Mr. Sun, I'm also in the real estate business, and I know very well the current prices in the Mid-Levels area." Luo Qihong glanced at his family. He thought it would be inappropriate to comfort them at this moment, as it would only make both of them lose face, so he focused on bargaining.

"Weishan Garden was built in 79, which is three years ago. Your company has been renting out this unit, but now you want to sell it at the price of a new house. Did you make a mistake in the price?" Luo Qihong asked with a faint smile.

Real estate agent Sun Zhigang froze and said awkwardly, "I made a mistake. Sorry! It should be 1280 yuan per square foot. 1720 square feet requires 220 million yuan."

"The 95% discount just now has not been taken into account." Luo Qihong said, "After taking into account the 95% discount, this house will cost 209 million yuan. Let's round it up to 2 million yuan."

"Mr. Luo, this... I still need to consult the company and give you a reply later." Sun Zhigang looked at Luo Qihong's smiling expression and suddenly didn't know how to explain.

After Sun Zhigang left, Lin Ya stepped forward and said, "Ah Hong, this 2 million house is too expensive. Why don't you go back to Sai Sai Lake in North Point and buy one? That's also a luxury house with a good environment."

"Yes, I think the house over at Saixi Lake is pretty good." Luo Zegui agreed.

Luo Qihong knew the frugal nature of the older generation and thought that the money was not wasted. He said, "I originally wanted to buy a villa, but considering the current financial problems, I had to settle for a luxury house in the Mid-Levels. Buying a luxury house is also an investment now, but we just live in it first."

"The house prices in North Point have increased a lot. The one we bought has a profit of about 4 yuan. The prices of luxury houses here are increasing even faster. By then, they may increase to 40 yuan."

When Luo Zegui and Lin Ya heard that it was mainly for investment, they stopped talking for a moment and began to carefully check the structure, environment and other conditions of the house here, for fear of buying an unreliable and expensive unit, which would affect their future sales.

Luo Qihong's words were still half true and half false. He would live here for the time being, and when the mainland was negotiating the return to China and the real estate market experienced a big drop, he would buy a villa. However, he would no longer live with Luo Qixing, so he would give the residential unit here to Luo Qixing.

At the same time, Luo Qihong would buy a car for Luo Qixing so that he could pick up his parents from get off work or do other things. After all, North Point is a bit far from here, and taking the bus is really shabby.

Luo Qixing hesitated for a moment, pulled Luo Qihong aside, and said, "I want to sell my current house in North Point and buy one in Saixihu. What do you think?"

Luo Qihong took a deep look at Luo Qixing and said with a smile, "Brother, you are a hidden talent. You actually want to buy a luxury house too."

Luo Qixing scratched his head embarrassedly. "I also want to live in a better place. Especially today when I came here to look at houses, I found that the environment of the luxury house is so good."

Luo Qihong glanced at the side and saw that his parents were still looking at the house carefully, so he told Luo Qixing the truth, "This residential unit is bought for you. I will buy a villa in the future. Now everyone will live here temporarily. As for the house in North Point, we will sell it at the end of the year."

(End of this chapter)