Billionaire developer flummoxed by Hong Kong land prices
Billionaire developer flummoxed by Hong Kong land prices
Lui Che-Woo revealed that he’s having trouble reading the market
Octogenarian billionaire Lui Che-Woo is struggling to read Hong Kong’s property market at the moment.
After more than 50 years as a leading developer in the city-state, he has failed to win any land bid this year.
“I can’t see clearly what’s happening in Hong Kong’s property market,” 87-year-old Lui said in an interview.
“Recently land prices have surged so much. I really don’t know what’s happening right now. I need time to think quietly for a while before figuring out the situation we are in.”
Lui’s listed property arm, K Wah International Holdings, has submitted 16 unsuccessful tender bids in land auctions so far this year. After home prices fell and sales slowed earlier this year, large Hong Kong developers have been bidding with caution, making way for smaller-scale local companies and firms from the mainland.
More: Berlin: the new hot city for Hong Kong investors
“It’s a shame that we have also tried hard to bid for land in Hong Kong, but failed,” he said. “It’s been a headache.”
Home prices in Hong Kong slumped as much as 13 percent between September 2015 and March 2016. They have risen more recently and transaction volumes rose to the highest in 14 months this August.
In 1955, Lui founded K Wah Group in 1955. The company’s construction materials have been used in a quarter of all Hong Kong buildings. He moved into property development in 1962 with his first residential project.
Read next: Hong Kong’s luxury market will fall, but how much?
Source: Property Report