How long can Hong Kong’s family real estate dynasties last?

Mainland developers are encroaching more and more on the city

TRD NATIONAL /
Jun.June 08, 2019 03:00 PM
An aerial view of Hong Kong Downtown (Credit: iStock)

An aerial view of Hong Kong Downtown (Credit: iStock)

Hong Kong’s family dynasties might not be able to maintain their control over the city’s wealth indefinitely.

The region’s “Big Four” property empires are all handing off a total of $109 billion worth of real estate to the next generation, who do not have the same close ties to Beijing that its predecessors did with the Hong Kong government and banks, according to a Bloomberg opinion column from Nisha Gopalan. And with Beijing’s presence in the autonomous territory ever growing, that might signal the beginning of the end.

Members of Hong Kong’s business community are also nervous about a proposed extradition law that would move the city’s fugitives to China, where the Communist Party controls the courts. The head of Hong Kong’s liberal party decried the proposal, saying it could hurt foreign investment. The city’s developers, on the other hand, have remained silent.

The biggest threat to the dynasties, though, comes from mainland China developers, who have done $12 billion worth of Hong Kong land deals over the past three years.

The heirs at Hong Kong’s big property firms are still very wealthy, and the expensive prices for real estate in Hong Kong are helping them stay that way. But they may not stay so dominant forever.

“At the end of 1997, Chinese firms comprised just 16 percent of the market value of Hong Kong’s stock exchange; now they account for around 68 percent,” Gopalan wrote. “It’s just a matter of time before the city’s real estate goes the same way.” [Bloomberg] – Eddie Small


Related Articles

arrow_forward_ios
(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Rodrigo Niño (Credit: Prodigy Network and iStock)

Embattled Prodigy Network CEO Rodrigo Niño to step down

Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

The trade war keeps escalating. Here’s how it’ll impact real estate

The trade war keeps escalating. Here’s how it’ll impact real estate

The trade war has created an uncertain environment for construction. (Credit: iStock and Getty Images)

General contractors are suffering under Trump’s new tariffs on Chinese goods

From left: London, Shanghai and Paris

In London, WeWork already reaping rewards of planned Brexit: Global property

From left: London, Shanghai and Paris

The TRD weekly global digest

arrow_forward_ios