Recovery? RM21.83 Billion office tower in HK sold to Chinese state company

Categories: China and Hong Kong Property related

Image Source: Straits Times article, from www.discoverhongkong.com

This is so huge that even my good friend who is not that interested with property investment sent me this morning. She said, “WOW.” Based on the price for the transaction, this is really a wow. A Hong Kong office tower was sold at a record HK$40.2 billion (RM21.83 billion) to a consortium led by a Chinese state company. China Energy Reserve and Chemicals Group was the lead in a consortium which purchased The Center, a 73-storey landmark skyscraper. It is the fifth tallest tower in Hong Kong. There are many articles online about this. One of it is here, by South China Morning Post. Another one is here, which is pointing more towards a potential relaxation of the capital control instituted by China earlier. “Bloomberg: Turning the Money Tap On.” (I think if the relaxation story is true, this is applicable only to Hong Kong which is part of China. Support towards Hong Kong is an internal matter and this is different from allowing Chinese companies to buy non-China related assets, especially property in many advanced countries)

Suddenly, things seem to be positive here in Asia? Well, if China is now relaxing the capital control, many countries would benefit, especially those property markets that Chinese love. That country with many cities which are the most liveable in the world? Australia. It may also benefit our neighbour too, properties in Sentosa Island for example. Properties in London remains a favourite too for Chinese buyers. Last but not least of course it would also trickle down to a small property market called Malaysia. 🙂 Well, it’s going to be even more positive if a few more of such huge deals are announced in the near future, whether it’s for Hong Kong or elsewhere. Who knows, after President Trump’s visit to China in a few days time, even more changes are coming? Happy reading and following.

written on 3 Nov 2017

Next suggested article: Stable sentiment in property market Malaysia. Positive?

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Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.