Bloomberg: Hong Kong’s Rich Are Preparing for a Worst-Case Scenario

https://www.bloomberg.com/news/articles/2020-06-13/hong-kong-s-rich-are-preparing-for-a-worst-case-scenario

While many predict Hong Kong’s real estate will experience increased pressure under the unresolved Covid-19 situation and National Security Laws, one must understand the Hong Kong real estate market is quite unique. While other mega metropolitan cities do provide relatively flush liquidity, their property markets have very different characteristics. Unlike Hong Kong, the bulk of the value of a development lies in the structure rather than the land, prices are driven by yield rather than speculations, and a host of fees and taxes that keeps prices certain sectors in check. London’s residential market, for example, is yielding multiples of that of Hong Kong’s while on the surface. However, landlord’s rental returns are quickly eroded by government fees and tax, and additional penalties for overseas landlord. While it is shrewd to have diversification, one should acquire comprehensive and holistic understanding of a foreign market before allocating one’s asset into it.

Insight from Bloomberg -Share-office markets appears to be crashed by pandemic

GBE keeps abreast with market. Share-office markets appears to be crashed by pandemic. The capex injection for asset enhancement in return for future uplifting the accrual income in book apparently does not work. Office conversion to shared space involving right layout design, positioning the openable window, IT infrastructure, air treatment and circulation, Fireman staircase interchange, Beverage corner, right billboard, right elevator access and washroom facilities. These are all inter-acting factors for successful operation from Professional Building Surveyor

Mingtiandi reported Softbank pulled out from WE-WORK india
Bloomberg reported 23 April

Insight from Bloomberg – Fed Warns of Significant Hit to Asset Prices If Crisis Grows

GBE agrees very much this headline from Bloomberg. It comes to our attention some institutions have been carrying out silently “de risking” or “de leveraging” in their already heavy-loaded asset portfolio taking the advance that the real estate market out-looks apparently look relatively stable than other investment

 

Credit:

https://www.bloomberg.com/news/articles/2020-05-15/fed-warns-of-significant-hit-to-asset-prices-if-pandemic-grows