Shanghai royal shrink more than half the price

Sales slowed, reduce give land, the mainland enterprises into the room "DongXian" season. However, hong kong-invested room enterprises have seized the opportunity to copy the land market frequent mainland, just like a pair of "DongMang"
apartment in shanghai
scene.


In the first half of 2011, Kowloon warehouse become the mainland to take the most active Hong Kong enterprises. In the previous three months, Kowloon warehouse were in suzhou, changsha, hangzhou scored much of land, the total investment of 10 billion yuan. The second half of 2011, li ka-shing, a subsidiary of the Yangtze river industrial [introduction newest dynamic], hutchison whampoa take great Kowloon warehouse, land in the mainland market "gold rush,". Beginning June, long and the early in tianjin, changchun, dalian, foshan and land to harvest.


"Always believe: when all people rush in to come out, when all don't play to rush in." This sentence is the li ka shing experience many investors as jinke [introduction newest dynamic] jade law. And the sentence on the most thorough explanation arrive, or the super rich. However, li ka-shing for industry impression, is not only the land copy, and alleged "store".


Earlier on media reported, long and department in Shanghai, wuhan, store up to behavior, and value-added share takings. However, hutchison whampoa the end of 2010 in Shanghai a royal, has been to the area in 2011 the embarrassment of decline plate value. Always with sound operation of the li ka shing is, in the housing market into the second half, still can continue in the mainland, according to make money on?


Spend billions of inverse city to rob


Hutchison whampoa the li ka shing is to the main platform of the mainland property market, this "grab" the responsibility of, still have to go someplace by hutchison whampoa.


June 3, 2011, hutchison whampoa signing XiaoLiuZhuang area north of tianjin project, it is reported, this project vote by hebei district city company and hutchison whampoa properties tianjin cooperation, the expected investment more than 6 billion yuan. With the project in only 20 days later, hutchison whampoa changchun company and the reserve price with 464 million yuan with changchun a land area of 158900 square meters of residential ShangFu land, hutchison whampoa first into the changchun high-tech zone.


Rest the four or five months, li ka-shing shot again. In November 2011, in more land under the condition of the shoot frequently flow, hutchison whampoa decisive competition to a plot out in foshan, the total investment of more than 1.5 billion yuan. Times weekly the reporter understands, and yellow for total cost of this plot for 896 million yuan, after this plot will develop it into for residential and commercial property. This is the guangzhou, shenzhen, zhuhai, dongguan, jiangmen after, li ka-shing again in south China into a son.


After a month, hutchison whampoa and appeared dalian land market, and to the li ka shing another real estate platform the Yangtze river industrial with 1.9 billion yuan had a successful xigang district dalian 143000 square meters of the land for commercial use. According to introducing, this land acquisition is the subject of action for the dalian darien project company real estate development Co., LTD, the Yangtze river industrial and hutchison whampoa their own the company indirectly 50% of the rights and interests.


In addition to the outside the city, in the current round of the mainland property market in land control, li ka-shing also in the end of 2010, in chongqing, Shanghai, nanjing high price to rob. In November 2010, after three years, li ka-shing in chongqing again shots, hutchison whampoa through the bidding mode, with 1.31 billion yuan price had success in a new city of chongqing and housing land. And then, before and after the li ka shing in Shanghai, nanjing winners in the land. In 2010 the early December, hutchison whampoa subordinate industry trade investment Co., LTD. With total price 1.62 billion yuan picked Shanghai qingpu area zhao lane plate 17 plot, floor price for 21436 yuan/square metre, premium rate was 191.5%, and refresh the zhao lane plate unit price "king" record. Christmas Eve, hutchison whampoa with 3.18 billion yuan price scored nanjing hexi plate G53 plot, a 17.7% premium, floor price for 8548 yuan/square metre.


A quick computation, since the end of 2010, li ka-shing's long and has been in the mainland is $ten billion dollars give land, its footprint in the mainland spread all over the country. In 2003, hutchison whampoa in mainland China only the layout of Shanghai, shenzhen, chongqing, guangzhou and Beijing seven cities. 2004, 2005 two years, hutchison whampoa "inverse city and on", they have in xi 'an, chengdu, changsha, changchun, wuhan, tianjin, chongqing and other to invest 40 billion yuan a huge amount of money, the circle more than 3 million square meters of land, basic completed its level of cities and major second city strategic layout. According to the August 2011 hutchison whampoa released center daily news, in the land that the current accounts for land reserve can develop into a total of 9.8 million square meters with residential primarily property, of which 97% in mainland China, 2% in Britain and 1% in Singapore and Hong Kong, China. This land reserve including distributed in 23 cities of 48 project, expected in several years development stage.


Capital chain advantage


The mainland property market with very cold, why the li ka shing is often turn out?


"Domestic economic sustainable development is to attract Hong Kong room in the main reason for the mainland enterprises." The real estate industry research institute HanChangJi jammed consultant to The Times weekly newspaper reporter analysis, combined with the current domestic credit reduced, a lot of medium and small real estate enterprise as the money offshore step up pressure, while Hong Kong room enterprises enter the mainland to develop the market is more time, so if a large amount of Hong Kong room in the mainland enterprises, is the flow of capital and investment will double influence results.


In fact, not only hutchison whampoa, Kowloon storehouse, nordstrom, kerry properties, such as chow taifook enterprises in the mainland and Hong Kong have "horse race circle". According to not complete count, 2011 port in the mainland market investment enterprises is more than 20 billion. Many of these "gold" by the reserve price gain favorite plot or project. But there are exceptions, in September 2011, after 83 rounds of 5 real estate into second with 3.497 billion yuan of kunming won two of the commercial plots.


Hong Kong enterprises to take, including hutchison whampoa, there are some capital chain advantage. According to not complete count, by the end of 2010, Hong Kong listed in Hong Kong and main operation of real estate enterprise, average asset ratio is only 26.71%. But the house property of the four major Kings of Hong Kong (li ka-shing, lee, the renowned cheng yu tung, GuoBingXiang) company capital liabilities scale to all only about 20%, up to 30 June 2011, the net assets of the li ka shing hutchison whampoa ratio of 21.9%.


In contrast, the domestic enterprises listed room easily to asset ratio of more than 70%. And public data show that by the end of the first half of 2011, the mainland of the real estate enterprises listed average asset ratio is 71.28%, and nearly 10 years of record high, at the same time, the listed room enterprises total liabilities has more than 1 trillion yuan.


In 2012, the beginning of spring, land market so empty. According to Beijing central plains real estate data, 1 month, key city land flow standard rate is 44%. However, li ka-shing seems to be for the further copy the preparation. According to Hong Kong apartment in shanghai media latest news, and yellow in the foundation of the 5-year and 10-year dollars debt, because warm response, already will issue size each increased to 500 million us dollars, that is $1 billion (about 7.8 billion hk dollar). This will for 2012 years in the mainland market rob hutchison whampoa, note "feed".


The other side compartments, li ka-shing another business center of gravity in Hong Kong property platform the Yangtze river industrial [introduction newest dynamic], but also to the mainland market assault. Recently, the executive director of the Yangtze river industrial ZhaoGuoXiong media, said the mainland in 2012 with a flood of acquisition opportunities, cheung kong (holdings) will be special attention to the mainland city integrated projects.