HK - Housing 01 (May 08 - Aug 11)

[LenaHuat]

No stopping HK developer, Kerry Properties

Hong Kong auctioned a piece of land on the Kowloon peninsula on Tuesday at a price that was a third above market forecasts, indicating the property sector could still be frothy.

[winston]

Locally, analysts are expecting next month's policy address to contain new measures to cool Hong Kong's red-hot property sector.

Source: Dr. Check, The Standard HK

[winston]

TOL:-

When will the bubble burst ?

What will cause the burst ?

What are the consequences when the bubble burst ?

And why must it burst ? Why cant it get dearer and dearer since Mainland money is continuously flowing into HK properties ?

[millionairemind]

The only possibility is when inflation sets in much earlier than anticipated and the FED has to raise interest rates in double quick time. This will essentially kill off much of the speculation.

As long as the FED keeps the rate at current level, this sea of money slushing around the world has to find a place somewhere to make better returns.

[winston]

Some other possibilities:-

1) If they implement a residency requirement ie. one must have paid HK tax for a year before one can buy a HK property. However, I dont see this happening as the HK Property Developers are a very powerful goup.

2) Some perceived catastrophic event eg. Tiananmen, SARS, Daya Nuclear station etc.

[LenaHuat]

The HKD is pegged to the USD.
There is no incentive to keep HKD at pitifully low interest rate. To keep HKD is to keep the equivalent of USD. Plus the USD is depreciating like a falling brick. It's a double whammy for those who hold HKD.

[winston]

It will be a matter of time before they peg the HKD to a basket of currencies, if not the RMB.

It does not really make sense for them to keep HK interest rates to be so low, when HK inflation is so high.

[winston]

Not vested

DJ MARKET TALK: HK Developers Outperform; Momentum To Go On - UOB

1203 [Dow Jones] HK property stocks continue to outperform, property sub-index last +0.4% vs flattish HSI;

Cheung Kong (0001.HK) stands out, +2.0% at HK$113.70 although has to be said part of strength likely coming from unit Hutchison (0013.HK), +1.2% at HK$66.00.

UOB KayHian notes sector started to "notably outperform" overall market this month, believes this is partly because various "leaks" to media suggest that no detrimental policies will be announced in next month's Policy Address, as feared earlier.

House believes momentum will continue, supported by fact developer stocks underperformed physical market significantly in first place, still trading 10% below their 4Q09 high while home prices have rallied 15% since.

Source: Dow Jones Newswire

[LenaHuat]

This HK couple made a 7-fold vain in 12 years

Tuesday, September 28, 2010
Another day, another record property sale.
A three-story home - Sunbeam House 5 at 36 Repulse Bay Road - has been sold for HK$280 million, or more than HK$65,000 per square foot.

Its total gross floor area is 4,260 square feet.

The sellers are Roy Chen Yang- chung, reportedly a son of a developer, and Woo Yuk-lynn.

They purchased the property, which has a parking space and an ocean view, for HK$37.52 million in 1998.

[kennynah]

if there's a lesson we all can learn from this repeated theme, it will be

money makes money...

so, we all better make more money from the markets...invest well....and hopefully, many moons later...

our names will be the ones reported in papers...

good luck all...

don't give up.... the million starts with the 1st dollar.....