On 27 Aug, 2012, at 8:54 PM, J wrote:
HK real estate valuation methods:
(1) affordability - irrelevant unless one fully accounts for the affordability by incoming refugees as opposed to locals of any particular class or aggregate of classes. Hong kong is an international city, after all.
(2) yield - suppose so, as long as we treat USA t-bills as Ccc- or about par with subprime, in which case hong kong real estate at 3% yield is clearly undervalued
(3) relative value - compared to everywhere else, fully accounting for taxation, even-up for societal savings pool, adjusting for on- and off-balance sheet cumulative fiscal deficits, and tweaking for worthy social services (school, health, longevity, etc), hong kong is, again, obviously undervalued
(4) absolute cost - cost of buying and cost of holding, plus hassle of renting, less tax on sale. Hong kong is self-evidently under-appreciated.
(5) prospect - as much of the rest of the world turn tyrannical, hong kong remains steadfast, true to form, beacon of economic freedom and political liberty, devoid of tyranny of the mind-numbing majority, fiscally positive, of small and essential government peopled by servants and staffed by no masters - hong kong's worth is rising.
no 'eyeballs' valuation as practiced everywhere else needs to be tee-ed up for hong kong, the gold that yields, and therefore hong kong real estate tracks gold more closely than most other real estate.
A portfolio comprised of hong kong real estate and physical gold, further enhanced by self-sustaining paper gold trading, spiced with cloud-ATM extraction by way of option trading on gold and its derivatives, with all spare surplus and excess savings used to getgold, then hold more hong kong real estate ought to be a winning overarching macro strategy.
On 27 Aug, 2012, at 6:26 PM, A wrote:
<To understand these sky-high prices, we need to find a new way to analyze them, say some analysts.>
sounds reminiscent of using 'eyeballs' as a valuation method...
From: B
Sent: Monday, 27 August 2012, 11:25
Subject: Re: Per china capital diversification, time to mark to market-fantastic-wet-dream
deposit boxes...that's what we're living in here, Mac!
Aug. 26, 2012, 10:24 p.m. EDT
New records for Hong Kong real estateCommentary: Risks abound in equity-driven market
By Craig Stephen
HONG KONG (MarketWatch) — As Hong Kong property again sets new highs, it’s getting harder to find any conventional yardstick to make sense of these stretched prices.
After a late summer spurt in transactions sent the Centa-City leading index to a new record, last Friday came reports of Hong Kong’s most-expensive-ever property sale. A luxury apartment in the Peak district sold for a staggering 470 million Hong Kong dollars ($61 million) or HK$75,806 per-square-foot, according to the Hong Kong Economic Journal.
But it’s not just the strata-title properties that are soaring, as even modest living spaces are up 100% in the past two to three years.
If you want to buy a two-bedroom, 700-square-foot apartment built in the last 25 years close to the Central business district, expect no change from $1 million.
To understand these sky-high prices, we need to find a new way to analyze them, say some analysts.
Barclays Capital in a new report classifies Hong Kong as an equity- driven — rather than a mortgage-driven — property market, where we need to think of apartments more like a “deposit box” to hold wealth, rather than homes for people.
On Sun, Aug 26, 2012 at 1:18 PM,M wrote:
analysts say property ownership is out of reach even for the upper middle class.
Amen
On Sun, Aug 26, 2012 at 8:31 AM, J wrote:
Am convicted that the mainland kins, refugees, freedom-seekers, rogues, scoundrels, and whatever would astound by blowing a bubble the likes of which never before seen, befitting a continental surplus savings plenty economy that invented paper money and buried enough of same, either and / or, in getgold imperative, stacksilver prerogative, pileplatinum backstop, or hong kong anything hovel
http://ca.news.yahoo.com/hong-kong-apartment-fetches-record-61-million-092256955.html
Hong Kong apartment fetches record $61 million
A luxury apartment in Hong Kong has sold for a record HK$470 million ($61 million), making it the priciest condominium in the Chinese city and possibly the second most expensive in the world, reports said.
An unidentified buyer paid the HK$75,806 ($9,773) per-square-foot price for the 6,200-square-feet (576-square-metre) unit at Opus Hong Kong in the upmarket Peak residential area, Hong Kong Economic Journal and Sing Tao Daily said.
The whopping price for the unit, which takes up the entire eighth floor of the 12-storey building, is believed to be Asia's most expensive apartment and the world's second most costly after London's One Hyde Park, Sing Dao Daily said.
The building was designed by the Pritzker Prize-winning architect Frank Gehry.
Developer Swire Properties declined to confirm the deal.
"We have no information to share at this point," spokeswoman May Lam-Kobayashi told AFP.
She added however that tenants recently leased another unit at the property for HK$850,000 a month.
Local media reported that the sale beat the city's previous record price of HK$360 million paid for a unit at another luxury property last year.
"This is definitely a new record price for any Hong Kong apartment," Centaline research head Wong Leung-sing told AFP.
"But we think it's an isolated case as this is an ultra luxury condo," Wong said, adding that it could not be used as a yardstick to gauge investors' appetite for luxury apartments in the Asian financial hub.
Property prices in Hong Kong, famous for its sky-high rent and super-rich tycoons, have surged over the past few years due to record low interest rates and a flood of wealthy buyers from mainland China.
The property market however has seen a slowdown this year, with sentiment hit by the eurozone crisis and plans to boost public housing.
Even so, many residents complain they can no longer afford decent accommodation in the city of seven million people, and analysts say property ownership is out of reach even for the upper middle class. |
