Hong Kong Tycoon Adrian Cheng Is Looking To Expand And Invest In Land Over The Next Year
If you are aware of the current situation in China, you’ll know that the country is facing a real estate crisis where people have opted out of house loans, and the real estate industry is struggling to stay afloat. However, things are looking better now that the Hong Kong Tycoon Adrian Cheng is looking to expand his project and invest around $1.4 billion in land in the year 2023.
Even though economists across the world don’t have many high hopes regarding the current situation of the Chinese real estate industry, Cheng, the chief executive of Hong Kong-listed New World Development, is taking on to challenge the speculations made by the analysts who have stated that the Chinese property prices are only going to go down ahead of the liquidity crisis and the slowing down of the country’s economy.
Against The Analysts
The country is going through a wave of defaults caused by the failure to complete apartments that the people have partially paid for. Property market analyst, Roselea Yao, disagrees with Cheng’s speculations and stated that there are no signs of a strong recovery from the industry.
However, when it comes to Adrian Cheng, the heir to the Chow Tai Fook Family fortune, states that the situation that the industry is in is at the lowest it possibly can be. The only thing the industry can do now is slowly recovering from the crisis. He mentions that he is quite optimistic about the scenario and believes that the real estate industry will rise again in the upcoming years. While being interviewed by Financial Times, Cheng pointed out that this was the best time to avail yourself of the opportunity and acquire the ‘war chest’ in the form of land and assets.
A Sizable Project
Because of Cheng’s optimistic approach, he and his group are now looking into investing 10 billion over the upcoming months to get their hands on land in some of China’s top-tier cities, including Shanghai, Hangzhou, and Shenzhen. The New World Development group has already taken the lead in buying both industrial and greenfield sites in China for development purposes. One of the group’s holdings consists of the luxury mall brand K11, which is actively used as a way to target the elite of China by inviting high-end retailers, art installations, and restaurants to wow the crowd.
No Competitors Left
Adrian Cheng is convinced that this is the best time for him to avail this opportunity as he knows that he and his group don’t have the competition they used to have. This is because several local developers have officially called it quits due to being financially drained. While the companies struggle to push through the crisis, Cheng takes advantage of the perfect opportunity that he believes would be fruitful for him and his group.
With China slashing its mortgage lending rates twice a year, the government is still struggling to bring the industry back on its feet.