It is not an exaggeration to use "jumping price" to describe the strength of this house sales promotion.
As the real estate market continues to slump, Yangtze River Industrial Group’s new project Haiyi Plaza in Dongguan has also launched a limited-time group purchase discount, with 30 sets of special-priced houses, marking the first shot at 50% off domestic house sales.
The project’s public account used “Down payment starting from 140,000 yuan” as the title, which also attracted people’s attention.
It is understood that the lowest price of Li Ka-shing’s Dongguan new project Harbor Plaza is only 13,000 yuan per square meter, which is more than half the registered unit price of 31,000 to 43,000 yuan displayed on the official website of the Dongguan Housing and Urban-Rural Development Bureau. This can be said to be Li Ka-shing’s The Yangtze River Industrial Group conducted an unprecedented price reduction activity.
It seems that Li Ka-shing’s Cheung Kong Holdings has suffered heavy losses in this operation, but in fact, using 30 houses as a gimmick, Li Ka-shing’s operation can be said to have made a fortune.
After all, today’s Dongguan is no longer the Dongguan of the past.
In the first half of this year, Dongguan’s new home transaction volume fell 39% year-on-year, setting a new low in the past six years.
As the domestic real estate market continues to weaken, Li Ka-shing's operation is almost a pessimistic vote for the market.
After all, this approach will not only affect the Harbor Plaza property, but will also have an impact that cannot be ignored on the primary and second-hand housing prices in the surrounding area.
But do you think Li Ka-shing lost money?
In fact, this is not the case. The new project Harbor Plaza was acquired in the 1990s, and the cost is low enough. Even if it only sells for more than 10,000 yuan, the real estate is profitable for Li Ka-shing. More importantly, this operation It also basically reflects Li Ka-shing’s expectations for the future trend of domestic real estate.
After all, Li Chaoren once said many years ago: "I will never earn the last copper plate."
This is not Li Ka-shing's first real estate discount sale.
As early as last year, Li Ka-shing’s Hong Kong real estate was sold at a 30% discount. After the listing, the real estate was also extremely popular. Since then, Hong Kong’s housing prices have also been steadily falling. This time, Li Ka-shing’s intention is also very obvious, that is, and More than ten years ago, I prepared to "run away" in advance.
For domestic real estate developers, Li Ka-shing’s operation is definitely of reference significance.
When the real estate market is not going well, real estate developers need to destock and return funds early. Price reduction is the only way. It is not necessarily a bad thing to make less money or even lose money.
After all, for real estate developers, if they cannot remove inventory, their funds will be cut off. Facing a fiercely competitive market with many developers, they need to use a head start to seize the opportunity and remove inventory earlier.
And this is not the first time that Li Ka-shing has shown his initiative to the market.
As early as 2011, Li Ka-shing started his sell-off.
In 2011, Hutchison Port Trust went public, and Li Ka-shing used it to cash out approximately HK$42.9 billion. Just two months later, Hui Xian Real Estate Trust, held by Li Ka-shing's two major groups, Cheung Kong Holdings and Hutchison Whampoa, was listed in Hong Kong. Li Ka-shing also Transferred 40% of the equity to obtain approximately HK$12.3 billion in funds.
In 2013, Li Ka-shing once again accelerated the sale of domestic assets, which was jaw-dropping.
Including Hong Kong Kingswood Ginza Mall, Guangzhou Xicheng Metropolis Plaza and Shanghai Lujiazui Oriental Huijin Center, Li Ka-shing sold more than 20 billion Hong Kong dollars in assets in one go in 2013.
In 2014, Li Ka-shing started the selling and selling model, which became the year in which Li Ka-shing had the largest annual sales frequency and cash withdrawals.
In that year, Li Ka-shing reached a total of 8 transactions, involving a terrifying amount of HK$90.4 billion; including the sale of 50% interest in Hong Kong Electric Company for HK$24 billion, the sale of 25% interest in Watsons for HK$44 billion, and the sale by Li Ka-shing The second son, Li Zekai, led the sale of Yingke Center in Sanlitun, Beijing.
Since then, Li Ka-shing has slowed down the pace of asset sales, but transactions are still advancing slowly.
In 2016, Li Ka-shing sold 50% of Shanghai Lujiazui Century Plaza for HK$23 billion. In 2017, he also sold the Central Center and so on.
has a lot of cash. Li Ka-shing sold it here, but what did he buy there?
Britain is the core of Li Ka-shing’s heavy bet.
The assets purchased by Li Ka-shing in the UK at that time covered almost all industries related to people's livelihood in the UK, such as water supply, power supply, natural gas transportation, railways, communications, and retail.
Li Ka-shing’s optimism about the UK can be traced back to more than 20 years ago, in 2000.
At that time, Li Ka-shing spent a huge sum of approximately HK$58 billion to purchase the British 3G license, and spent another HK$37.5 billion to acquire partial interests in EDF's power grid subsidiary in the UK.
In 2010, Li Ka-shing’s Cheung Kong Group once again acquired more interests in the British power grid for HK$70 billion, thus controlling about a quarter of the UK’s electricity distribution channels at that time.
At that time, the vice chairman of Li Ka-shing’s Cheung Kong Infrastructure said at a press conference that the acquisition was expected to double the company’s business scale in the UK, and the company was still looking for investment opportunities in Australia, the UK, and Canada.
In addition, Li Ka-shing also spent approximately HK$30.9 billion to acquire the UK's largest water company in 2011, and a year later invested HK$7.7 billion to purchase a British natural gas supplier.
In response to the doubts, Li Ka-shing only responded with one sentence, "We understand the situation in Europe, but I think that within five years, companies here will have the motivation to rise."
This is the horror of Li Chaoren.
In the past half century, Li Ka-shing has always been able to seize every opportunity with amazing insight. In the fields of real estate, energy, retail, Internet, finance and even aviation, Li Ka-shing has always grasped it just right. This is why he has been able to win the title for many consecutive years. Key reasons for being the richest man.
Li Ka-shing has been the richest man in Hong Kong for 21 years and the richest Chinese man for 15 years. If his ability is outstanding, it must be his judgment and grasp of timing.
As an investor, Li Ka-shing’s judgment on the entire macro-economy can be said to be many years ahead of ordinary people. When domestic real estate is facing downward pressure today, Li Ka-shing started taking action ten years ago, although he was not at the peak of housing prices. Leave when you are at your peak.
However, considering that today’s domestic regulations on large-scale transactions have become increasingly strict, if Li Ka-shing chooses to sell assets around 2020, it may not be so smooth.
This also corresponds to Li Ka-shing's famous saying, "Never make the last copper plate."
The most important quality of a businessman may be a keen investment insight, but in the long run, what is more important than this may be interests. Restraint, the restraint of human greed, and Li Ka-shing has achieved this almost perfectly.
This is the real charm of Li Chaoren.
end.
Author: Sir Luo, concerned about the economy, society and everything in our world, curious about the logic behind the development of things, optimistic pessimist.
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