6/7/2018-10

Cai Hongxing: Private supply reduction or attack on emerging industries

The government has rezoned 9 private land to build public housing. Cai Hongxing, executive director and chief executive officer of Huasheng Group, said that lack of land supply, developers’ profits have decreased, or they have turned to invest in more emerging industries, and the government is recommended to promote public and private Cooperation mode.

The Chief Executive, Mrs Lam, introduced a new housing policy, including the implementation of a vacant tax on the first floor and the allocation of nine private residential sites to public housing.

When Cai Hongxing attended the radio program yesterday, he said that the reduction of land resources and private buildings, coupled with the growing number of competitors, in the case of more and less peasants, developers are less and less profitable, and may turn to invest in more emerging industries.

Promote government to promote public-private cooperation model

The land price is the biggest cost for developers to build a building. Cai Hongxing suggested that the government can adopt a public-private partnership model and introduce some special land sales terms to ensure that developers have reasonable profits. In the future, units can be not priced by developers.

As regards the implementation of vacant tax, Cai Hongxing said that there are not many vacant flats in the market. The levy of vacant tax has little effect on increasing market supply. It also emphasizes that developers have no intention of hoarding flats. The “squeeze toothpaste" method is not for the purpose of carrying High prices, many times, I hope to understand the specific market reaction first, and then carry out the sale, and believe that the government should cover the second-hand property market with vacant taxes.

The Government also requires developers to sell at least 60% of the number of residential units for sale. Choi Hung-hing believes that developers generally sell separate units and ordinary units. The two markets are facing different markets. Each time a 20% unit is launched, it will increase the difficulty of sales. “If you can’t sell it, you have to bear the vacant tax." It is considered that it should not be dealt with together with other units.