Chapter 697: Hong Kong's Major Banks Raise Interest Rates! Hong Kong's Housing Prices

Chapter 697: Interest rates of major banks in Hong Kong have increased! Housing prices in Hong Kong have fallen slightly in some areas!!

It has been more than half a month since I came back from Yanjing.

Yang Ming has been going to get off work normally.

October 23, 1981.

Friday.

Yang Ming had just sat down when Lin Xiuzhi made him a cup of coffee.

After drinking that cup of coffee, when Lin Xiuzhi was about to make another cup for the boss, she said, "Go and call Mai Lisi."

Mai Lisi had already returned to the general manager's office of the Empire Group to work.

Now, the important contracts and documents in the chairman's office, which were originally required to be signed by Yang Ming, are now all handed over to the secretariat, and the secretariat will hand them over to the general manager's office after processing.

After reading them, General Manager Mai Lisi will hand them over to various departments.

In other words, Mai Lisi's work has increased a little, but Mai Lisi is still very happy.

Mai Lisi came to Yang Ming's office.

Lin Xiuzhi closed the door.

"Mailisi, do you feel that the housing prices in Hong Kong are not right now?"

According to Yang Ming's understanding in his previous life.

The hot speculation in real estate pushed up the land and house prices, which were far beyond the actual affordability of Hong Kong citizens at that time.

According to statistics, in 1975, the price of small and medium-sized residential buildings in Hong Kong was about 230 yuan per square foot, and a 400 square foot residential unit was sold for about 92,000 yuan.

At that time, the average monthly income of Hong Kong citizens was 1,300 yuan, and the amount of money to buy a small residential unit was equivalent to about 6 years of wages for citizens.

However, at the peak of the real estate market in 1981, the price of small residential units had risen to about 1,000 yuan per square foot, and the price of a 400 square foot residential unit increased to about 300,000 yuan, while the average monthly income of citizens was about 3,000 yuan, that is, the amount of money to buy a small residential unit was equivalent to about 8 and a half years of wages for citizens.

This moment came in 1982.

This year was the darkest year for the real estate industry in Hong Kong. Land prices, house prices, and rents fell sharply across the board. Investors' bidding interest in government land auctions was generally low, and there were many cold scenes. Many times, the auctioneers were forced to take back many government lands under helplessness.

The collapse of the real estate market naturally hit land prices first.

In 1982, Hong Kong land prices generally fell by 40% to 60%, with the biggest declines in industrial land and high-end residential land.

For example, the selling price of industrial land in Kowloon Bay, calculated by floor area, fell from a peak of HK$360 per square foot in December 1980 to HK$25 per square foot in October 1982, a drop of 93%.

High-end residential land also fell from a peak of HK$1,502 per square foot in September 1980 to HK$540 per square foot in May 1982, a drop of 60%.

The sharp drop in land prices led to a sharp drop in the fiscal revenue of the Hong Kong Governor's Office that year. In 1982 and 1983, the fiscal revenue and expenditure of the Hong Kong Governor's Office showed a deficit of HK$3.935 billion.

The sharp drop in land prices led to a sharp drop in house prices and rents.

In 1982, residential property prices generally fell by 30% to 40% compared to the peak period.

The sluggish market caused a significant decline in transaction volume and an increase in vacant buildings.

At this time, it was almost the end of 1981.

Yang Ming remembered that the housing prices in Hong Kong had actually begun to become uneasy at this time. The most obvious place was that the interest rates of Hong Kong banks began to rise.

In March 1978, the Governor's Office issued 27 financial licenses in one go to make Hong Kong a global financial center.

This means that a large number of M-funded banks and R-funded banks were introduced to Hong Kong, which made Hong Kong one of the three major financial centers in the world.

These banks entered Hong Kong to make money.

When the real estate in Hong Kong was very popular, banks also played a great role in promoting it.

The mortgage interest rate is a very critical point.

At this time, the bank raised the interest rate, which means that the bank felt that the housing prices in Hong Kong had risen to a certain level and began to be a little scared.

Even so, there are many banks in Hong Kong now, including British banks, including Huifeng Bank and Jardine Bank, and Hengtie Bank, etc.

In addition, there are a series of Chinese banks such as Bank of East Asia, Hang Lung Bank, Overseas Trust Bank, etc.

American banks, Citibank.

Major Japanese banks.

And Swiss banks.

The interest rates of these banks are different.

American banks and Japanese banks may feel that the housing prices in Hong Kong are starting to be wrong, and they have raised the interest rates appropriately, but those Chinese banks still don’t take it seriously, but still lend a lot of money to speculators.

Especially when seeing that Huifeng Bank dared to lend money to Jianing Group for real estate speculation, other Chinese banks continued to lend money to Jianing Group.

So much so that Yang Ming already knew that the current housing prices have actually fallen a little, but it has not been seen with the naked eye.

Just like many cities in China later, on the surface, housing prices in many cities are still rising. In fact, after Li Jiacheng sold a large number of domestic properties, domestic housing prices began to fall, but some places did not see it.

The housing prices in Hong Kong are also like that now. For example, the housing prices in the central area of ​​Hong Kong are still very scary. Whether it is the price of ground land or the price of the entire building, it is still rising, giving people a feeling that it is still very hot.

This feeling is very similar to the situation before the bubble of Japanese real estate. Many investors who don’t know whether they will live or die are still scrambling to buy buildings.

"Mallis, the housing purchase interest rates of some banks in Hong Kong have increased now. Have you noticed?"

"Boss, that's true. It started in September. The interest rates of Japanese and American banks have obviously increased, but the interest rates of Chinese banks have not changed much for the time being."

At this time, even without Yang Ming's reminder, Mai Lisi felt something was wrong.

The main reason is that the current room prices in Hong Kong are too high.

In the central area of ​​Hong Kong, many real estate projects have exceeded 200,000 per square meter. What is this concept? In the future, the highest housing prices in first-tier cities in China will be this price.

In other words, the highest housing price in the central area of ​​Hong Kong in 1981 is equivalent to the highest housing price in the city center of first-tier cities in China in 30 years.

At this time, Mai Lisi also felt it was very outrageous and very abnormal.

Even if Hong Kong is a land of gold, it is impossible to have this housing price.

Under normal circumstances, it is at most one-third, or even lower.

Back then, the Empire Group spent more than 60,000 Hong Kong dollars per square meter to buy the land of the Meili Building. In fact, it was very expensive at the time. If it were changed to now, it might cost 300,000 Hong Kong dollars per square meter.

It is equivalent to a five or six times increase from 1978 to now.

"Boss, the housing prices in some places have fallen slightly, as you said. For example, some areas in Hong Kong can no longer sell second-hand houses, but many people have not yet reacted."

For this.

Yang Ming told Mai Lisi and others last year and asked them to prepare.

In addition to selling a large number of houses at high prices and obtaining a large amount of funds, they are also preparing for the upcoming Hong Kong real estate crash.

Now that it seems to be proceeding step by step according to the plan said by the boss, Mai Lisi really sighed, how did the boss know?

Is it really the law of market development?

Mai Lisi thinks it is impossible.

If that is really the case, then the housing prices in Hong Kong cannot be predicted as the boss said.

It is very likely that the boss knew some news that they did not know in advance, for example, he may know some news that others do not know from the country.

Chapter 3!

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