Chapter 697: The major banks in Hong Kong raised interest rates! Hong Kong house prices
It has been more than half a month since I came back from Yanjing.
Yang Ming has been commuting to and from get off work normally.
1981 10 Month 23 Day.
Friday.
Just as Yang Ming sat down, Lin Xiuzhi made him a cup of coffee.
After drinking that cup of coffee, Lin Xiuzhi was about to make another cup for her boss when she said, "Go and call Meris."
Meris has already returned to work in the office of the general manager of the Empire Group.
Important contracts and documents that now belong to the chairman's office and were originally required to be signed by Yang Ming are now handed over to the secretariat, which will then hand them over to the general manager's office after processing.
After General Manager Mai Lisi read it, he handed it over to the major departments.
In other words, it is equivalent to more work for Meris, but Meris is still very happy.
Mai Lisi came to Yang Ming's office.
Lin Xiuzhi closed the door.
"Mailisi, do you feel that there is something wrong with the housing prices in Xiangjiang now?"
According to Yang Ming’s previous life knowledge.
The blazing trend of property speculation pushed up land and property prices, which were far beyond the actual affordability of Xiangjiang citizens at that time.
According to statistics, in 1975, small and medium-sized residential buildings in Xiangjiang cost about NT$230 per square foot, and a 400-square-foot residential unit sold for about NT$9.2.
At that time, the average monthly household income in Xiangjiang was NT$1300, and the cost of purchasing a small residential unit was equivalent to about six years of wages.
However, at the peak of real estate in 1981, the selling price of a small residential unit had risen to about 1000 yuan per square foot, and the selling price of a 400-square-foot residential unit had increased to about 30 yuan. The average monthly income of a citizen family was about 3000 yuan. The payment for small residential units is equivalent to about eight and a half years' wages.
The moment came in 1982.
This year was the bleakest year for the real estate industry in Xiangjiang. Land prices, building prices, and rents fell sharply across the board. Investors’ interest in bidding at official land auctions was generally low, and scenes of neglect were repeated. In many cases, auctioneers had no choice but to be forced to Recovered many pieces of official land.
When the real estate market collapses, land prices will naturally bear the brunt.
In 1982, land prices in Xiangjiang generally fell by 40% to 60%, with the largest declines occurring in industrial land and high-end residential land.
For example, the selling price of industrial land in Kowloon Bay, calculated in terms of floor area, dropped from a peak of $1980 per square foot in December 12 to $360 per square foot in October 1982, a drop of as much as 10%.
高级住宅用地，亦从1980年9月每平方尺1502元的最高水平，跌至1982年5月的每平方尺540元，跌幅为60%。
The sharp drop in land prices led to a sharp decrease in the fiscal revenue of the Hong Kong Government-General's Office that year. In 1982 and 1983, the fiscal revenue and expenditure of the Government-General's Office in Hong Kong suffered a deficit of 39.35 billion yuan.
The sharp fall in land prices has led to sharp falls in property prices and rents.
In 1982, residential property prices generally fell by % to % from their peak.
The downturn in the market has caused the transaction volume to shrink significantly and the number of vacant buildings to increase.
At this time, it was almost the end of 1981.
Yang Ming remembered that the housing prices in Xiangjiang at this time had actually begun to appear uneasy. The most obvious place is that the interest rates of Xiangjiang Bank began to rise.
In March 1978, the Governor-General issued 3 financial licenses in one go in order to make Xiangjiang a global financial center.
This means introducing a large number of M-funded banks and R-funded banks to Hong Kong, which has made Hong Kong one of the three major financial centers in the world.
These banks entered Hong Kong to make money.
When Xiangjiang real estate was very popular, banks also played a big role in promoting it.
Mortgage interest rates are a very critical point.
At this time, the bank raised the interest rate, which means that the bank felt that housing prices in Xiangjiang had risen to a certain level, and began to be a little scared.
Even then, there are many banks in Hong Kong now, including British-owned banks, including Huifeng Bank, Zhada Bank, Hengxing Bank and so on.
In addition, there are a series of Chinese-funded banks such as Bank of East Asia, Hang Lung Bank, Overseas Trust Bank, etc.
American bank, Citibank.
Major Japanese banks.
There are also Swiss banks.
The interest rates of these banks are different.
U.S.-funded banks and Japanese-funded banks may have sensed that housing prices in Hong Kong were starting to go wrong and raised interest rates appropriately. However, those Chinese-funded banks still did not take it seriously and continued to lend a large amount of money to real estate speculators.
Especially when we saw that Huifeng Bank still dared to lend money to Jianing Group for real estate speculation, other Chinese banks continued to lend money to Jianing Group.
So much so that Yang Ming already knows that the current housing prices have actually fallen somewhat, which is not visible to the naked eye.
Just like many cities in China later, in many cities, housing prices were still rising on the surface. In fact, after Li Jiacheng sold a large number of domestic real estate, domestic housing prices began to fall. However, some places did not notice it.
The housing prices in Xiangjiang are also like that now. The housing prices in Xiangjiang Central District are still very scary. Whether it is the price of land on the ground or the price of the entire building, it is still rising, giving people a feeling that it is still very hot.
This feeling is very similar to that before the Japanese real estate bubble. Many investors who did not know whether to live or die were still rushing to buy buildings.
"Mailisi, have you noticed that the home purchase interest rates of some banks in Xiangjiang have increased?"
"Boss, it's true. It started in September. The interest rates of Japanese banks and American banks have increased significantly, but the interest rates of Chinese banks have not changed much yet."
At this time, without Yang Ming's reminder, Meris felt something was wrong.
The main reason is that the current rooms in Xiangjiang are too high.
In Xiangjiang Central District, the housing prices of many properties have exceeded 20 per square meter. What is the concept? In the future, the highest housing prices in first-tier cities in China will be this price.
In other words, the highest house price in Xiangjiang Central District in 1981 was equivalent to the highest house price in the city center of first-tier cities in China thirty years from now.
At this time, Mai Lisi also felt that it was very outrageous and this was very abnormal.
Even if every inch of land in Xiangjiang is of high value, it is impossible to pay this price.
Under normal circumstances, it is at most one third of the price, or even lower.
At that time, the Empire Group spent more than 60,000 Hong Kong dollars per square meter to buy the Meili Building plot. In fact, it was very expensive at that time. If it were replaced now, it might cost 300,000 Hong Kong dollars per square meter.
This is equivalent to an increase of about five or six times from 1978 to now.
"Boss, as you said, the housing prices in some places have dropped slightly. Like those second-hand houses, some areas in Xiangjiang are actually unsold, but many people have not yet reacted."
For this.
Yang Ming told Mai Lisi and others last year and has been asking them to prepare.
In addition to selling a large number of houses at high prices and obtaining a large amount of funds, they are also preparing for the upcoming collapse of Xiangjiang real estate.
Now that it seems that the boss's plan is being followed step by step, Meris really sighs, how did the boss know?
Is it really the law of market development?
Melis thought it was impossible.
If that is really the case, then it is impossible to predict the housing prices in Xiangjiang as the boss said.
It is very likely that the boss knows some news that they do not know in advance. For example, he may know some news from China that others do not know.
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