Hong Kong 1980: The Savage Era

Chapter 563 Chapter 565 [Cheap goods everywhere] (New book, please collect it)
The acquisition of Heineken Group is not something that can be completed overnight. It will take time to complete the secret acquisition anyway. Therefore, Luo Qihong returned to Hong Kong after finishing his official business in Singapore.

Repulse Bay Villa.

Guan Jiahui kissed Luo Qihong hard on the face, then looked at Li Jiaxin provocatively. The two of them were not only friends and besties, but also enemies competing for favor.

Luo Qihong just smiled slightly at this. They were enemies in their previous life, but their relationship in this life is much better.

"Hmph! It's just a merger of companies, what's the big deal?" Li Jiaxin said with a sneer.

Guan Jiahui laughed and said, "Third brother, you don't understand. I told you to learn financial knowledge well, but you don't even know this. This is not the addition of 1 plus 1 equals 2, it's the calculation method of 1 plus 1 greater than 2, or equal to 3."

"And United Industries got it at a very low price, which means I got a bargain."

Li Jiaxin walked away angrily. Guan Jiahui knew that she had won and became even happier.

"Well, if she curses, I can't do anything about it." Luo Qihong said unhappily.

Guan Jiahui said confidently, "Don't worry, she doesn't dare to curse in front of you."

"I have good news for you. I spent HK$1.5 million to buy the Yuen Lee Building in Tsim Sha Tsui. The building has a floor area of ​​9.2 square feet and is near the Jordan MTR station. Isn't that amazing?"

"So cheap? Have you investigated carefully?" Luo Qihong was slightly surprised. You know, in the peak period of 97, a commercial building like this one in Tsim Sha Tsui would cost 5 to 6 million, and it might not be possible to buy it.

Guan Jiahui smiled and said, "I followed the procedures and now I have it. There is no problem. The original owner was a real estate company. They bought it at the highest price and owed the bank a lot of money. If I don't sell it at a low price, the bank will take it away. At least if I sell it, I can avoid bankruptcy liquidation."

There are many high-quality properties on the Hong Kong market being sold at a reduced price. Even though the prices are 5% or 6% lower than the peak period, no one is interested in buying them. The boss of this real estate company is definitely a ruthless person. He directly reduced the price to 3% of the original price. He did not just slash the price, but cut it in half.

Luo Qihong couldn't help but be tempted by such a cheap commercial building. When the market recovers, he can at least double the profit. Now he can collect rent, and even if the rent is not profitable, he can still maintain the operation of the building.

"And I also helped the third brother buy a commercial building in Mong Kok for only HK$1 million. The floor area is just over 10 square feet. If it is demolished and rebuilt in the future, it will be at least 17 square feet." Guan Jiahui looked back at Li Jiaxin who came out with a glass of red wine, and was very proud.

"So you plan to continue buying cheap properties?" Luo Qihong felt that 3% of the original market price was already cheap enough, and the price would be around this even if the property market in Hong Kong fell to the bottom.

Li Jiaxin handed Luo Qihong a glass of red wine and answered first, "Of course! Now that I have so much cash in my hands, why not buy properties at bargain prices? I want to become the landlady of Hong Kong."

Luo Qihong is a famous landlord in Hong Kong. The floor area of ​​properties under his management exceeds 3000 million square feet, and the annual rent collected is no less than 100 billion Hong Kong dollars.

Li Jiaxin claims to be Luo Qihong's favorite woman, so of course she has to be like him and work hard to become a "landlady".

Guan Jiahui snatched the red wine from Li Jiaxin's hand and drank the whole bottle directly, still provoking Li Jiaxin with her eyes. It was Li Jiaxin's fault for deliberately not helping her hold the wine glass.

Luo Qihong did not stop him, and said with a smile, "If it is 3% of the peak market price, you can buy it at will. If it is higher than 3%, you should think about it. The location is good, so it doesn't matter if it is a little more expensive."

With the words of the "expert" Luo Qihong, Guan Jiahui and Li Jiaxin looked at each other and secretly made up their minds to strike hard and sweep up the beautiful properties in Hong Kong faster than the other party.

"How are the properties in Central? Is no one selling them?" Luo Qihong asked again.

Guan Jiahui replied, "Some people are selling, but the price is only 3-4% lower than before. A good commercial building costs about 20 billion, which is too expensive. How about you help us buy one? You have so much cash flow anyway."

Luo Qihong is considering whether to buy back the Entertainment Building and On Lok Yuen Building from Hysan Development and Great Eagle Properties at 5% to 6% of the price.

In this way, he made at least HK$19 billion for each building, and those buildings in Central that were not in a good location could also make HK$10 billion each, which was a very lucrative profit. "Okay, when the financial crisis is completely over, I will buy you a small commercial building in Central and use it to collect rent." Luo Qihong laughed. His current net worth is already hundreds of billions, so there is no need to care about a mere tens of billions of Hong Kong dollars.

"At present, the prices of luxury homes in the city have generally dropped by 4%, and ordinary residential units have dropped by 6% to 7%. This should be a good time to buy, right?" Guan Jiahui blinked her big, Caroline-like eyes and pulled Luo Qihong's arm charmingly.

Luo Qihong thought about it and realized that the price of luxury houses in the city could drop by at least 5%, and if someone took advantage of the situation, the price could drop to 7%. However, this situation was rare and it all depended on luck.

"The local market has not bottomed out yet, but if the price of luxury homes in the city drops by 5% or 6%, it would be a good opportunity. Forget about ordinary homes. The acquisition volume is too large, and the labor cost is too high, so the profit will not be that high." Luo Qihong said, "I suggest you start with shopping malls and shops. These types of properties are rising the fastest."

The Hong Kong real estate market needs a final push before it can hit bottom. International speculators need to return to Hong Kong and launch another attack. In this way, many real estate developers will collapse, and that will be the best time to take action.

Of course, some of the current properties cannot be missed. After all, there are only so many opportunities, and if you miss them, they will be gone.

The next morning, in the office of Zhaoan Group.

Luo Qihong was flipping through newspapers. Among all the businessmen in Hong Kong, he was the most relaxed one. Others were busy cleaning up the aftermath of the sniper war.

"Boss, you really have a good idea of ​​what's going on. Great Eagle Properties is indeed selling off the On Le Yuan Building." Kang Wenyi walked in and said.

"Has anyone made a bid?" Luo Qihong put down the newsprint and asked with a smile.

Kang Wenyi shook his head. "Not yet! The real estate market is very bad now, and there are rumors that international speculators will make a comeback. No one dares to take out so much cash to buy the Central Building."

"Okay! Then you talk to Eagle Properties. Our reserve price is 25 billion." Luo Qihong said.

"Yes, I think Great Eagle Properties will definitely agree. They acquired a lot of properties during the peak period last year. Now they have some problems with cash turnover. If the crisis comes again, I am afraid they will face the same dilemma as in 83," said Kang Wenyi.

"Pay attention to some areas in Central, Tsim Sha Tsui and Wan Chai. If there are suitable commercial buildings, you can sell or purchase them. The highest purchase price is 5% of the peak price." Luo Qihong then assigned a task to Kang Wenyi.

Zhaoan Group is wealthy and powerful, so it doesn't matter even if it cannot play a role in the financial decisive battle. After all, it is time for Hengan Investment Company to open the market and make an effort.

Then Luo Qihong received another call from Su Qishan, who said that he had reached an agreement with Hysan Development Company to buy back the Entertainment Building for HK$23 billion, which would bring a direct profit of HK$19 billion.

When the news came out, it caused a shock in the market, just like the initial sale. Some people said that Luo Qihong had a good grasp of the timing and was worthy of being a real estate tycoon in Hong Kong, while others said that Luo Qihong was a blood-sucking capitalist.

However, it caused a crazy drop in the Hong Kong real estate market, which fell by 5% in just two days. The decline is still ongoing, making real estate companies even more panicked.

A reporter interviewed Luo Qihong, asking whether Hong Kong's real estate market has reached its peak.

Luo Qihong said he didn't know, but he was sure that international speculators would come to Hong Kong again.

Such a tactful statement naturally shows Luo Qihong's attitude: Hong Kong's real estate market will continue to fall, as to when it will bottom out, it is up to the market to decide.

But it is obvious that only by defeating the international speculators can Hong Kong's economy avoid falling to the bottom and is expected to recover to its glory days in 97.

However, many people cannot even overcome their current difficulties, let alone a future of economic recovery.

(End of this chapter)