31/8/2018-7

Acer Capital: Supply is in short supply

Recently, the property market has cooled slightly. Acer Capital (02288) Chairman Chen Weilun believes that the key factor affecting the property market is always the supply and demand problem. In the case of low supply and continuous demand, the property price has not seen a correction in the short-term, and the investment property is most worthy of optimism, especially It is the Huangzhukeng District that will be the focus.

In the first half of the year, the property market remained hot, and the prices of various properties rose significantly. In the past month, under the influence of Sino-US trade wars and interest rate hikes, the property market seems to have cooled slightly. Chen Weilun analyzed that the most important factor for property prices to rise or fall is supply and demand. “Hong Kong’s property market is always a problem of supply and demand. It is basically the basics of economics. Hong Kong has limited land. It will not suddenly become bigger. There is not much supply in a short period of time. Demand is continuous and the population is only The increase in supply is less and the demand is harder. As for the external market conditions, interest rate and capital, he thinks that it is not enough to make a substantial adjustment in property prices. “The issue of US interest rate hikes has been spoken for a few years. It is expected that the pace of interest rate hikes will not accelerate. If the annual increase is 0.75 to 1%, the market has already digested it, and the short-term impact is not significant. In addition, there is no rapid withdrawal of funds, so there is not much impact.”

The government focuses on housing, ignoring commercial land

Acer Capital focuses on investment in non-residential projects, including industrial and commercial buildings. Chen Weilun pointed out that the prospects for industrial and commercial properties are also improving. In the final analysis, the imbalance between supply and demand is also the same. “The supply of commercial districts is limited. Central and foreign companies are not allowed to enter the market. Foreign and mainland companies are coming to Hong Kong for business. On the new supply, the government is constantly looking for land to solve housing demand. There is no time to deal with commercial supply. In fact, commercial absorption is high. ”

In terms of commercial projects, Acer Capital’s future focus project is to rebuild the Wong Chuk Hang Commercial Building. In the district last year, there were four full-scale industrial buildings, including a total of 1.48 billion yuan to buy the entire building of No. 23 Wong Chuk Hang Road, with a floor price of about $13,800. The site area of ​​the property is about 7,148 square feet. At the end of 2015, it was approved to pay a land premium of 10.47 million yuan. It can be rebuilt into a commercial building with a building floor of about 107,000 square feet. Chen Weilun believes that Wong Chuk Hang benefits from the high rents in Central and the tenants move to the area, so the prospects are promising. “Hong Kong Island is the core area of ​​traditional business. Even if we want to develop projects in Central and Admiralty, there is no land supply and no entry. Wong Chuk Hang wins in convenient transportation. It takes only 10 minutes to take the MTR to Admiralty.呎) Over 100 yuan, Wong Chuk Hang Commercial Building is only 30 yuan per trip, and the organization can relocate to save rent.” In addition, he believes that the shopping district of Wong Chuk Hang District is concentrated and is dominated by long-term investors with bright prospects. The shopping district of Wong Chuk Hang is fine. The commercial buildings and industrial buildings are concentrated in Wong Chuk Hang Road and Hoi King Road. The redevelopment of the consortium in Wong Chuk Hang Estate last year was all old-fashioned families and developers. It is a long-term development and the market can be There will be no more sources for trading, which will increase the price.” He pointed out that the standard center will be rebuilt into Jiasha, with a total investment of 2.2 billion yuan. It will be completed in 2021 and is expected to be sold from 2019 to 2020. The consortium is in full purchase.

Regarding the prospects of commercial buildings, he thinks that it is worthy of optimism. Since there are difficult projects available in the Central District, it will develop to the surrounding areas. According to the information, the Xiefei Building of the Jaffe Road in Wanchai has acquired 41 houses and 1 shop in the past two months, accounting for 86% of the entire building. The capital involved is more than 2.5 billion yuan. The price of each group ranges from 5.95 million to 6.38 million. Yuan does not wait, he said that the merger is still in progress.

In addition, the Group has developed the Hongji Capital Building in Kwun Tong Waterfront Road in the early years. He thinks that there is more supply in East Kowloon in recent years. Therefore, it is better to invest in Hong Kong Island Wong Chuk Hang.

Industrial building silver code attracts investors entrepreneurs

The industrial building has also become another investment focus. The Group has already developed Cheung Sha Wan Hui Chuang Fang and Tai Kok Tsui Hong Chuang Fang projects respectively for sale. In recent years, many industrial buildings in the market have been popular for sale. Chen Weilun analyzed that “the construction price is cheaper and the silver code is fine, so it attracts investors. Another key point is that many entrepreneurs in the market work in these buildings. The room is in line with demand.”