China’s property crisis has been lingering for over two years. The latest development was Hui Ka Yan, the founder and chairman of China’s largest property developer the Evergrande Group, was arrested and placed under police surveillance at an undisclosed location. To what extent are developers responsible for China’s property crisis? Rich Chinese flocking to Singapore … [Read more...]
How will bankruptcy of Chinese developers affect us
When Chinese developers go bust, how will it affect us? After Evergrande, this Tuesday (September 19) another leading China property developer Sunac filed for Chapter 15 bankruptcy protection in the US. The country’s second largest developer Evergrande is estimated to be US$340 billion in debt. The company lost US$81 billion last year. Similarly, China’s biggest … [Read more...]
What did deflation of China’s property bubble tell us
Investors are holding their breath as the world witness the gigantic China property bubble deflate. Last week all eyes are on Evergrande to see whether China’s most indebted developer will default. The company is due to pay US$83.5 million in interest on September 23 and another US$47.5 million on September 29. It is nothing but a dead cat bounce A day before the … [Read more...]
Selling properties with skin in the game
With circuit breaker, I finally have the time to read Nassim Nicholas Taleb’s 2018 book Skin in the Game: Hidden Asymmetries in Daily Life. What is skin in the game? It means standing behind what you say; having a stake in what you promote; and exposing yourself to the risk of what you advocate. If you are an organization, you are using the products or services you sell. If … [Read more...]
6 gimmicks agents use to sell foreign properties
I watched a recent Hong Kong TV programme about buying properties in Malaysia’s Penang. It was a big surprise to see real estate in Penang being positioned as investment properties. To Hong Kong people, Penang is a beach holiday destination in Southeast Asia similar to resort places like Phuket or Bali. Foreigners go there to buy their holiday or retirement homes. How … [Read more...]