I Want To Be a Rich Man on Hong Kong Island

Property and land prices on Hong Kong Island finally collapsed in December 1957, plummeting.

This wave of real estate cycle is also freshly released, that is, from 1953 to 1957; property prices in Kowloon rose from 15 Hong Kong dollars per square foot to 45 Hong Kong dollars per square foot, an increase of 300%. Residential land prices in Kowloon rose from HK$6 per square foot to HK$30 per square foot, an increase of 500%.

As for the reasons for this wave of increases, there are probably three points:

First, the external environment - the Korean War is over, the United States has lifted the trade embargo, and the situation on Hong Kong Island has stabilized!

Second, foreign capital entered the market—a large amount of funds from Southeast Asia fled to Hong Kong Island, with abundant hot money, and most of the funds from Southeast Asia infiltrated into real estate.

Third, make full use of installment and stratification, and the speculation of uncompleted properties is hot!

There were two reasons for the collapse of the real estate industry in December 1957:

First: land and property prices have risen sharply and rapidly, speculation is hot, and uncompleted property speculation is prevalent. As long as you pay a 5% to 10% deposit, you can buy uncompleted properties for speculation.

Second: After foreign and Chinese capital entered the market one after another, the supply of buildings on Hong Kong Island was already in a state of oversupply in the first half of 1957.

 …

In 1958, after the Spring Festival!

In the conference room of Cheung Kong, all the management members talked and laughed easily; because Cheung Kong not only escaped disaster, but also made a lot of money.

During the three years from 1955 to 1957, Cheung Kong developed a total of four large-scale residential buildings and one large-scale commercial complex; the initial profit of four buildings was estimated to be 70 million Hong Kong dollars. It turned out to be 15 million Hong Kong dollars more than expected, reaching 85 million Hong Kong dollars.

Selling 500,000 square feet of land in the Central District at a high price, Cheung Kong also made a profit of 25 million Hong Kong dollars.

As soon as Wu Guangyao walked into the meeting room, everyone stopped joking and looked at Wu Guangyao with admiration!

It was the boss who made Cheung Kong choose the most appropriate real estate entry time (high-rise buildings are allowed);

It was this boss again who allowed Cheung Kong to withdraw in time and avoid huge losses.

"What's the situation outside now?" Wu Guangyao asked after sitting down.

what's going on outside

Wu Guangyao probably knew about it, but what he wanted was the specific situation.

"There is a lot of wailing! The people of Hong Kong Island are now talking about buildings, and the transaction volume in the property and land markets is extremely low; even if the property prices in Kowloon have dropped to 25 Hong Kong dollars per square foot, real estate developers still cannot sell. Many real estate developers are speculators. At this time, they have been pegged by the banks one after another..." Xiu Yanbing said, because the matter had nothing to do with him, and his tone was somewhat gloating; if it was Changjiang Industrial, it would definitely survive the difficulties, not only There is Wu Guangyao, the God of Wealth; and Cheung Kong's houses are sold very quickly, so the funds are returned quickly.

Wu Guangyao nodded, it was similar to what he expected, but the worst was yet to come;

I know that in 1958, land and property prices on Hong Kong Island fell by 70% to 80%.

"How much capital does Cheung Kong have available?" Wu Guangyao asked again.

When everyone heard this, they thought that Wu Guangyao was going to buy the bottom line, and they became energetic one after another.

"There are only 40 million Hong Kong dollars that can be used, because you said that the Yangtze River Central Commercial Complex has reserved enough funds, so 40 million Hong Kong dollars cannot be used." Shi Jun said.

The Yangtze River Center Commercial Complex has spent 30 million Hong Kong dollars on materials and construction costs, and another 40 million Hong Kong dollars will be reserved for subsequent expenses.

The estimated construction cost of the entire Yangtze River Center is 70 million Hong Kong dollars, plus the land value, the total investment is close to 100 million.

A manager couldn't help asking: "Boss, do you think we should buy the bottom?"

Wu Guangyao was taken aback for a moment, and immediately said: "Go buy the bottom now, isn't our Cheung Kong industry a taker?"

"Successor?" The management questioned again, what did the boss say that everyone couldn't understand!

"The so-called takeover man means that a certain woman became pregnant because she had an affair with her beloved; but the woman's sweetheart abandoned her, and then the certain woman found another man and formed a family; then that man is the takeover man. , that is, to pick up the placenta left by others!" Wu Guangyao explained.

Everyone burst into laughter, the boss told this story really well!

Isn't this a metaphor that Cheung Kong is now buying the bottom, isn't it just a taker?

"So, everyone should focus on developing the commercial complex of Cheung Kong Industrial Co., Ltd., and don't think about buying bottoms! There is a basement under the first floor, and there are eighteen floors of hell under the basement!" Wu Guangyao warned everyone.

"What the boss said is very reasonable!" Everyone echoed, the boss's eyes are quite vicious, and those who believe him must be right.

No one knows when the bottom is, so few people dare to buy the bottom!

Of course, famous real estate friends like Li Chaoren and Zheng Yutong are typical bargain hunters.

However, in front of Wu Guangyao, they might not even be qualified to carry shoes!

Wu Guangyao made a copy from the end of 1949 to the end of 1950; the land worth 8 million Hong Kong dollars at that time was worth about 75 million Hong Kong dollars in 1957.

 …

Howls and howls describe the current real estate industry on Hong Kong Island!

Since he had no business of his own, Wu Guangyao also devoted his energies to other industries.

Hong Kong Island Airlines has developed well in recent years, thanks to the many measures provided by Wu Guangyao.

Service and safety are undoubtedly the two most important points in the aviation industry!

In terms of service, Hong Kong Island Airlines recruits stewardesses throughout Asia, which gives Hong Kong Island Airlines an international feel, unlike the airline stewardesses of Japan who wear kimonos and emphasize their own national characteristics too much, which makes passengers from other countries a little awkward; stewardesses Enthusiasm and courtesy, as well as adding a variety of styles of meals, providing drinks, etc...

In terms of safety, it mainly comes from the performance of the aircraft. Because Wu Guangyao knows the representative models of each era, Hong Kong Island Airlines will not buy a plane that leads to hell. At the same time, to strengthen the professionalism of the pilots, Shiyock of Swire Pacific once encountered a frightening thing, that is, the pilot actually took his girlfriend on the plane when he was flying in the United States. Passengers trembled. It is precisely because of the liberalism of American pilots that Schjork made up his mind to develop the aviation industry on Hong Kong Island.

These two aspects have been done well, and Hong Kong Island Airlines is a local airline, which has a great advantage over foreign airlines in terms of routes. Therefore, Hong Kong Island Airlines has begun to develop steadily in recent years.

The gap between the two local airlines on the Hong Kong Island-South-North route has begun to narrow!

In 1957, Hong Kong Island Airlines made a profit of US$2.8 million, and its three subsidiaries, Hong Kong Island Aircraft Mechanics Company, Hong Kong Island Aviation Catering Company, and Hong Kong Island Airport Services Company, also began to make profits, totaling US$350,000.

Although Wu Guangyao had an unpleasant relationship with Jardine Matheson (acquisition of Hong Kong Island Airlines), they have been living in peace;

However, whenever Wu Guangyao held a meeting at Hong Kong Island Airlines, the executive of Jardine Matheson would attend as much as possible, and even send an executive to come when he was not on Hong Kong Island.

Of course, Wu Guangyao has always notified Jardine Matheson because of his partner.

"I plan to buy two new airliners!" Wu Guangyao said directly.

At present, Hong Kong Island Airlines has only six passenger aircraft, three new Viscount aircraft and three old aircraft, which is behind Cathay Pacific's nine passenger aircraft.

Keswick did not object to the purchase of the airliner, but asked, "Or buy the British Viscount airliner?"

"Of course not. The Viscount airliner can no longer satisfy Hong Kong Island Airlines, so I decided to buy two Boeing 707s from Boeing. I believe everyone here has heard of it?"