Chapter 163 Entering the Real Estate Market
Chapter 163 Entering the Real Estate Market
Properties in Central are also divided into different grades, one based on location and the other on size.
Even in the 21s of the 20st century, when Hong Kong's housing prices were almost the highest in the world, it was not difficult for any wealthy person to buy a small property in Central, such as a shop, a small office building, or even a luxury residence.
But if you want to buy an entire building or a large shopping mall, it is almost impossible and you may not have this opportunity for many years.
For example, during the real estate crisis of 83-84, Hong Kong Swire Properties was almost bankrupt due to the burden of debt, but it never considered selling its buildings in Central. Finally in 1985, when it could no longer bear the debt pressure, it sold the Hong Kong Electric Group to Li Ka-shing.
Although the current Central cannot compare to what it will be in a few decades, it is still very difficult to acquire entire buildings now.
Su Yiyi asked curiously, "What big money? More money than sticky notes?"
"If it's handled well, it might be possible." Yang Wendong smiled and said, "Liao Chong Hing Bank wants me to do real estate business."
It is true that post-it notes have high profits, but after all, I am just a small person. If I want to sell post-it notes globally, I have to rely heavily on channels and have to make concessions.
At the same time, various piracy issues have always existed, not just for Post-it Notes, but also for several other products.
If one wants to make absolute huge profits like 3M did in history, one must have powerful resources and the American background behind them. Yang Wendong obviously does not have such conditions.
However, even so, even a part of the benefits is enough to make him the most potential richest man in Hong Kong.
The same is not the case with real estate. Once you buy a building, all the profits are yours. In addition, you can use leverage and know the timing of fluctuations. As long as you handle it well, the profits will not be lower than those from real industry.
Su Yiyi smiled and said, "That's not bad. I still remember two years ago, when we first went to see Wang Zhixian, you said you wanted to buy a building in Tsim Sha Tsui.
Now you even have buildings in Central.”
"The building over there by the Hong Kong Chinese Daily News is nothing special." Yang Wendong smiled and then said, "It's only noon now. Let's go. I'll take you to see Central again. If you like any building, we can find a way to buy it later."
"Really?" Su Yiyi asked with a smile.
Yang Wendong nodded and said, "Of course, or we can build something just as luxurious."
It is quite difficult to buy a house in Central, but it is relatively easier to build a building in this era. The value of Central lies in the location of the land. Even though it is only the 50s, the most core locations in Central are basically occupied.
Those core locations may only be auctioned once in one or two years, so it will be very difficult to compete. However, if you really enter the real estate industry, you will have opportunities.
Relatively speaking, buying land is much easier than directly purchasing some core buildings.
Su Yiyi said happily: "Okay, but I need to apply some skin care products."
"Okay." Yang Wendong nodded and said.
After becoming rich, everyone's living habits naturally changed. For example, Zhao Liming and Lin Haoyu, who both own houses and cars, also began to pursue other girls.
Not to mention Yang Wendong, his life is not luxurious, but he still enjoys the normal things.
Su Yiyi was much better, but every girl loves beauty, so she also bought some daily skin care products and simple cosmetics.
These are all normal human behaviors. Anyone who becomes rich will behave like this, as long as they don't indulge in extreme luxury or even gambling.
This time, Yang Wendong drove himself and took Su Yiyi to Central.
Of course, for safety reasons, the bodyguards still followed, even if they were in other cars. After arriving in Central, they would still hide around Yang Wendong. Even if there was something going on, Yang Wendong would ask them to do it.
It was a little after 12 o'clock when they arrived at their destination.
After Su Yiyi got off the bus, she said, "I'm so hungry. There was such a traffic jam at the ferry just now."
Yang Wendong shrugged and said, "There's no other way. We can only cross Victoria Harbour that way."
It was not until 1972 that Hong Kong had an undersea tunnel. Before that, Hong Kong Island and Kowloon could only be transported by ship, both by people and cars.
The one who monopolizes this business is the Star Ferry under the Wharf Group. As a normal and qualified capitalist, it certainly cannot have redundant transport capacity, so naturally there will be traffic jams most of the time. If it were not for the Hong Kong government's strict price limits, the prices would probably have multiplied several times.
Su Yiyi said, "Shall we go eat?"
"Okay." Yang Wendong said with a smile, "There's a steak house upstairs. The view is great. You can see half of Hong Kong."
"Yeah." Su Yiyi said happily: "I have learned how to make steak, but I just can't learn it. It's always hard to make it well."
Yang Wendong smiled and said, "Steak is something you only need to eat occasionally. It is nothing compared to Chinese food. If you really want to learn cooking skills in the future, just focus on learning Chinese cuisine.
There are so many provinces in the mainland, and each province has different cuisines. " "Okay." Su Yiyi nodded.
The two soon arrived at the steak restaurant upstairs. After having a meal, they went to a nearby cinema to watch a movie.
After the movie, Su Yiyi said, "Brother Dong, I don't know if my nose has been feeling uncomfortable lately. The environment in the theater just now made me feel a little uncomfortable."
"Uncomfortable? Is it because the smell is too strong?" Yang Wendong asked.
Cinemas of this era, even those in Central, were all big, with a single screen and more than a thousand seats in front of it;
This may also be due to the fact that there were fewer films in this era and it was too expensive to screen them in sets at the same time.
But you can imagine what the hygiene would be like in an environment with so many people.
"Maybe?" Su Yiyi said uncertainly, "It feels quite stuffy."
"This is how cinemas are in Hong Kong. It's a bit troublesome." Yang Wendong nodded and said.
He has been in Hong Kong for almost two years and has watched many movies in the past year, but the environment of none of them is good.
Su Yiyi saw that Yang Wendong seemed to be thinking about something, so she pulled his hand and asked, "Brother Dong, what are you thinking about?"
Yang Wendong smiled and said, "Yiyi, if we build a luxurious theater with fewer people, and the ticket price is higher, for example, 3-5 yuan, are you willing to spend this money?"
"If it makes you feel more comfortable, then it's okay." Su Yiyi said after thinking for a while.
Yang Wendong smiled and said, "Yes, there are many wealthy women like you in Hong Kong. Maybe there will be a market for this."
In the past, he had not thought about entering the real estate market so quickly, so he had not thought too much about it. But now that Liu Chongxing Bank has taken the initiative to offer him such a high credit line, it would be foolish not to invest when he knows the future of Hong Kong real estate.
However, he also knew that Hong Kong's housing prices would plummet starting in 66, so there were only two ways to do real estate:
One is to sell the pre-sale property to cash in quickly, and the other is to acquire some properties that are worth buying in advance even during the real estate crisis.
After all, the housing price plunge that began in 66 was relative to the peak in 64-65, and may even be higher than now.
Su Yiyi is also a smart person, and asked: "Brother Dong, do you want to invest in theaters?"
"Well, I have this idea now." Yang Wendong smiled and said, "The film market in Hong Kong is still quite large, and I have a media company myself. Cinemas and movies are also part of the media.
In this way, one investment can invest in both real estate and media, which is very cost-effective.”
Su Yiyi asked curiously, "Is cinema also considered media?"
Yang Wendong said with a smile: "One of the essences of media is to deliver information to the public. Movies can do this, but they often cannot do it directly. Their greater benefit is the fame they bring indirectly.
But cinemas, think about how many advertisements there are in cinemas?"
"Yes." Su Yiyi also understood.
Yang Wendong went on to say: “Moreover, cinemas must be located in places with high traffic, which is also very consistent with real estate investment.”
The next day, after arriving at the company, Yang Wendong called Wei Zetao. After listening to some of the things going on in the factory, he said, "Old Wei, contact the headhunters and find me someone who is proficient in real estate business."
"Okay." Wei Zetao agreed and asked, "Mr. Yang, are you planning to enter the real estate market?"
"I have this plan." Yang Wendong nodded and said, "Actually, I'm not in a hurry, but Liao Chongxing Bank gave me such a large credit line, so I'd rather not use it.
As for our factory, we can develop the Post-it Notes business ourselves, and the rest is mainly outsourced, which does not require much capital.”
The industries that can absorb a large amount of funds are shipping, real estate and the stock market;
Shipping is too difficult and requires a lot of capital, so it is not suitable for me at the moment. Even if I really start to try it in the future, I will focus on serving my factory’s business for a period of time, similar to BYD in its previous life, which bought ships to export its own cars.
It’s too early for the stock market now; the Hang Seng Index hasn’t even come out yet.
"Okay, Mr. Yang, I'll contact them right away." Wei Zetao agreed.
Yang Wendong added: "Let's register a new company name and call it Changxing Real Estate."
PS: Please give me a monthly ticket
(End of this chapter)