There are advantages and disadvantages. After Great Wall Industrial has a large land reserve, it is increasingly short of liquidity. By March 1954, Meng Youtian had to resort to the long-awaited trump card.
"Selling off-plan properties" is certainly nothing new today, but more than 40 years ago, when we first proposed this new method, the response from the real estate industry and society could be described as "groundbreaking." Hong Kong was the first place in the world to implement the method of ¡°selling off-the-plan property¡±. This method has now been implemented and used all over the world and has become an inevitable method for real estate developers to promote new properties.
If we use a metaphor vividly, the principle of "selling off-the-plan property" is actually very simple. If you run a factory, you can't make a lot of ready-made goods and wait for buyers to buy them. They usually produce them after receiving orders. With the order and deposit, the factory can start and sales are guaranteed. The same goes for real estate. To put it nicely, it means industrializing real estate.
Of course, before the building is built, buyers are required to pay a deposit first, which inevitably makes some people feel unsure. But this is not a problem. Great Wall Industrial uses lawyers or banks to protect the interests of buyers, thereby giving them confidence.
As soon as the foundation for the To Kwa Wan property was laid, Great Wall Industrial distributed a sales brochure, in which it introduced a new method of installment payment to the public: pay a deposit of 30% for the first phase, and pay for the second phase. Pay 10% for the second floor The balance of the eighth installment, 10%, will be paid when you receive the household registration certificate.
This is the first time that the installment payment method has been introduced, and it has also set a precedent for pre-ordering before the building is completed. After a brief period of doubt and consternation, Hong Kong citizens. On the first day the building went on sale, people flocked to the property and people who paid deposits to buy the property formed a long queue outside the property sales contact office.
When Great Wall Industrial was buying land on a large scale, banks expressed concerns about such crazy expansion, and the management discussed whether to continue to issue loans; there were also malicious and jealous speculations in the society, waiting for Great Wall Industrial to be in trouble due to lack of funds. Or at least spit out the land they have eaten to make up for the lack of liquidity.
But to everyone¡¯s surprise, Great Wall Industrial made another new move to promote its buildings. Accelerated capital turnover. Amidst everyone's doubts and speculations. Great Wall Industrial not only escaped unscathed, but also maintained a strong momentum of development and expansion.
"Ghost", "Superman", "Magic Brain" With the sudden rise of Great Wall Industrial in the Hong Kong real estate market. Meng Youtian, the leader of Great Wall Industries, has been called various titles by both industry and outsiders. Either derogatory or complimentary. But no one can deny that under his leadership, Great Wall Industrial has miraculously become one of the leaders in the rise of Hong Kong's real estate industry.
Ten years, huh. In less than ten years, Meng Youtian has achieved his set goals, or it may be much better than expected. As the real estate industry boomed, the next ten years were a period of skyrocketing fortunes for him, and then came another trough, which was another good opportunity to buy bargains and make a fortune in the stock market
There are always opportunities. Others rely on luck and courage, but Meng Youtian is opportunistic. But there is nothing to be ashamed of. He is not alone in what he does. Although he has robbed many people of their wealth, he has not blocked them all. Well, I am still very benevolent.
For example, now, driven by the booming development of Great Wall Industrial, more and more real estate developers are beginning to follow suit. Anyway, the capital required is small. If you advertise in the newspaper to sell off-the-plan properties, you will collect the money from the buyers and use it to buy land and build buildings. Land in Lee Garden Hill, Wharf, Tsim Sha Tsui, Sai Wan and other places have been snapped up, setting off a boom in real estate development.
As a result, the price of land has been rising all the way, and auctions have been held more frequently. Of course, the bidding on the field has also become fierce. Originally, Great Wall Industrial took the lead and had certain advantages in terms of capital and reputation, but it did not appear to be wealthy or domineering.
"More friends, more roads, fewer enemies, fewer walls." Anyway, we already have a large amount of cheap land reserves, as well as the secret arrangement of old buildings, so there is no need to rush to grab high-priced land with others. Of course, Great Wall Industrial also participates in the auction. If there are few competitors and the price is right, it will also buy it. And more of them rely on their own strength to participate in "eating the pie", which is a speculative activity in secondary bidding.
The so-called "eating pie" is actually a kind of speculation in the process of land auction. For example, if the Hong Kong government wants to auction a piece of land, A may be bidding alone, B may be bidding alone, C may be a cooperative bid among several people, the strong one will be a sole proprietor, the weak one will be a joint venture of several companies, and d has no intention of buying the land at all. , but also came to join in the fun and participate in the bidding.
This piece of land can only be bought for 10 million yuan. People who don¡¯t have 10 million yuan usually don¡¯t dare to bid, because if they really buy it, what should they do if they can¡¯t come up with the money? So, someone called for backup, and my aunt and uncle also called out.
?? Okay, the bidding is open. If four parties a, b, c, and d bid, start bidding from 5 million.?, six million, seven million, when the call was about the same, some people among them would start to discuss: "Why don't we vote back and vote again!" So everyone came to a compromise, and when one party called 7.5 million, , the other three parties stopped bidding, and the deal was completed at 7.5 million.
After that, parties a, b, c, and d immediately found a place to sit down and put the land up for bidding again. Okay, we bid again, and when the bid reaches nine million, c and d no longer bid, leaving only a and b. The difference of 1.5 million between 9 million and 7.5 million is divided equally among the four parties, and each party gets more than 300,000. Then, a and b bid again, a bids 9.5 million, and b may win. Let go, this land was finally bought by a for 9.5 million, and the difference between 9.5 million and 9 million was 500,000, and then divided equally between a and b, each party got 25 Ten thousand.
The whole process is like dividing a big pie into small pies. You eat one piece, I eat one piece, and everyone benefits. a won the site at a cheaper price, the other three parties also benefited, and the Hong Kong government suffered the loss. Meng Youtian didn't care about this. There was a prize for participating, so why not? If you can take a picture, you can take it, and if you can't, you can share some profits. With the strength of Great Wall Industrial, who dares not to give face?
There is another reason why Great Wall Industrial is slowing down, that is, Hong Kong has not yet lifted the building height limit. A five- or six-story building not only takes up a lot of land, but is also not very profitable. After a while, when the Hong Kong government lifts the restrictions, Meng Youtian will be ready to get started. To this end, he has sent people to Europe and the United States to learn the technology and experience of high-rise buildings. When the height restriction order is lifted, the first skyscraper, or the tallest building in Hong Kong, will be built by himself. (To be continued, please search Piaotian Literature. The novels will be better and updated faster!