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Yes, they are BUYING land during a CRISIS

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The go-getter usually gets what they want to get because they are always looking and looking and pounding on the right opportunities. This is the same for property developers in Malaysia. We continue to occasionally read about land buying before the COVID-19 hit us. Perhaps with the current Conditional Movement Control Order (CMCO), we will soon hear of these land acquisition news as well?

In Hong Kong, property developers continue to bid a lot of money for land. They (property developers) are bidding to win because they could then build homes to be sold to Hong Kongers who needs a roof over their head. Real estate is a big thing in Hong Kong. Even car park space could become an investment asset. Earlier article about car park space being bought and sold for a profit here. As for Hong Kong land bidding, here’s one happy company which has won versus its rivals. CK Asset Holdings, the property arm of Li Ka-ching’s empire has outbid its rivals to win a land plot in Kowloon for a bargain price of HK$4.95 billion (RM2.79 billion). Wait a minute, just buying land alone is RM2.79 billion?

Article in forbes.com With regards to CK Asset Holdings’ winning bid, this was what Thomas Lam, head of valuations and advisory at Knight Frank said, “The winning bid is slightly lower than expected, and the result is still encouraging as there was no tender withdrawal this time. The site came with stringent requirements, including providing at least 1,000 starter homes and various controls on eligible buyers as well as future flat sales arrangements.” 

CK Asset said it’s pleased to have won the tender for the Anderson Road site and will look forward to contributing housing supply to Hong Kong through the development. The project will have both subsidized and private housing. The government’s stipulation is that at least 1,000 of the site’s apartments have to be sold to Hong Kong residents at a 20% discount to market prices. This will help alleviate the city’s chronic housing shortfall. Please do read the full and comprehensive article here: Article in forbes.com

The starter home project is an initiative by the Hong Kong government to help eligible middle-class families and single young professionals to buy their first property. This scheme is only for first-time property buyers and those who meet certain asset and income criteria are eligible. That first started home project has flats which range in sizes from 261 to 507 sq ft. It was priced from HK$3.14 million to HK$6.6 million (RM1.77 Million RM3.72 million) after a 38 per cent discount. Reference on the first of such a project in South China Morning Post here.

What CK Asset Holdings have done is to invest for their future development. What this tells us is that beyond just looking at current situation, it’s important to also look into the future and investing towards it today. There’s definitely some risks involved. All the What Ifs and What may happen. Their experience in the real estate world may have helped them to come to the winning bid, even if it’s slightly lower as per Knight Frank.

This may just be a good question. Do we think property is a necessity or do we think of properties like a car. Do we think our purchase of our first property has the same status as our purchase of our very first car? Or our very first iPhone? By the way, renting is definitely cheaper today when compared to the potential mortgage which one has to pay for the same home. The question is for how long? There’s no need to answer or even to debate. The action is in your hands yeah. Happy deciding what makes us happy.

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Next suggested article:  Someone won after 136 rounds of bidding. The price is a RM10,500 per sq ft home.

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