observation: something my club bought for hkd 1,340/sft can now be marked-to-market at 1,850 on bid, or 2,000 on ask.
the sale & leaseback situation we the gold citadel club bought into back in april at hkd 1,340/ft in wang chuk hang is still the same squarefootage as before, and we will take possession in a few days.
one good thing about industrial property in general is that, being essentially a concrete shell, standardization of value is fair;
that hk properties in general are very liquid, they are amenable to 'mark to market' treatment; and
given the standardization and liquidity most of the time, hk real estate is closer to cash than not, especially given the low transaction cost.
under such circumstances, real estate and monetary inflation make a good combo when garnished with severely negative interest atmosphere and sauced with a poor equity market environment.
meaning, highly liquid and under-valued real estate is almost as good as highly liquid and under-valued cash, and earns more 'interest'
it is what the central banks have brought on, and so we must enjoy the suffering.
nearly home to coconut :0) |
