Land leases in HK are protected by “Unchanged for 50 years”. Alex Leung pointed out the uncertainty on the conditions of extension for property interests expiring in 2048 or beyond. 

Alex Leung makes an estimation to SCMP and expects the land sale revenue (including lease modification) would meet the government budget set in 2019. He considers the government would not easily withdraw the coming four land sale even though the tender prices are on low sides.     

Alex Leung believed that due to market uncertainty, developers are slowing down the launching of new projects, and less application of pre-sale was recorded. But mortgage restrictions are released, developers could build more small to medium-sized flats rather than mirco-flats.

An irregular shaped residential land in Tuen Mun, converted from “Green Belt” use, is going to be tendered by the Government. Alex Leung was interviewed by two newspapers for his comments. One of the interviews was made on the spot.

IFRS 9 has been implemented since 2018. At economy downturn, the provision for impairment of accounts receivables would increase significantly. Ross Wang pointed out that securities and finance companies are mostly affected, whilst other industries would need to face certain impact.

The Lands Department disclosed the second and third bid prices of the West Kowloon commercial land, and were 25% and 50% lower that the first bid price. Alex Leung commented that limited competition due to the scale of development, some developers attempted to "bottom fishing".

Economic, trade, technology, cultural, and political are integrated globally asunder "globalization concept" is promoted. However, "deglobalize” trend begins in 2020 as by trade wars have continued to occur between countries. Stella Law advised that we must pay attention to the impact this trend must be paid on future career development.

 Land for The LOHAS Park Phase 12 is receiving the letter of intent from developers. Alex Leung said that the project is located next to MTR station and shopping mall. The project will supply a variety of flat sizes after completed, thus the risk is low.

Stella Law explained that the valuation of innovative pharmaceutical companies should consider the "5P factors", including Patient pool, Penetration, Price, Peak sale, and Possibility of Success.

The residential plot of 135 Tai Hang Road attracted 25 bidders to bid last week, which is a record high in the past one and a half years. Alex Leung believes that the tender price is a reasonable level in the market. It is expected that the first few bid prices will not differ much.

Stella Law was invited by the Hong Kong Trade Development Council to attend the Business of Intellectual Property Asia Forum. She gave a speech on the forum to share how 3C (Collaboration, Co-branding and Cross-licensing) can create more business value for the enterprises.

Alex Leung commented that 135 Tai Hang Road is located in area among luxury developments and overlooks the Hong Kong Stadium. The investment amount is suitable for medium-sized developers, so it is expected a large number of bidders.

Hunan Yongxiong Asset Management Group, one of the China's largest debt collection companies, filed a listing application in the US. The Group applies new technology, greatly increased corporate efficiency and spread risk of micro-credit companies, thereby increasing its potential.

Many companies in today's generation will use technology or expand their business through Internet. They also use different digital tools for daily administrative work. Employers need not only your EQ, but also DQ (Digital intelligent quotient).

The holding company of LOUIS VUITTON is acquiring a US jewelry brand, Tiffany & Co. Stella considers the brand of Tiffany & Co., as impressed by its “Robin Egg Blue”, not only represents their jewelry retailing but also other potential business lines.

West Kowloon station site is the biggest and most expensive commercial plot ever sold by the government. Market practitioners have different expectation. Alex Leung opined it would be between HK$13k and $14k psf, which is found matching the awarded price of Sun Hung Kai.

Residential land Kai Tak District 4A2 site is the biggest plot on the runway and the view is slightly inferior to other sold lands with full Victoria Harbour view. Alex Leung expected that the bid price will be conservative.

Alex Leung explained that micro flats with clubhouse facilities attract young people with limited affordability, but expected that more normal sized flats would be built due to the recent relaxation of mortgage restrictions.

The number of Invention Patent in Greater Bay Area has been increasing remarkably. Stella Law commented that due to the importance of Intellectual Property to the company value, there are many development opportunities in the area.

According to The Economic Times India, the valuation of Zomato may exceed USD 3 billion. Stella Law pointed out that valuation by Gross Merchandise Volume is suitable to value online food delivery company.

Alex Leung commented the MTR Wong Chuk Hang Station Project Phase 4 opinioned that the location of the project is good, but the land premium is rather high. The estimated saleable unit rate of the completed flats could be 30,000 to 33,000 psf.

Leo Wong mentioned that resuming brownfield land may suppress the development of industries like logistics, recycling and vehicle repairing. These industries may be forced to acquire land in higher cost or move to mainland China.

The government is selling two residential lands by tender in 2019 Q4. Alex Leung commented that developers may be prudent towards the Tai Hang land while it is expected that small and medium developers may try to take a share in the Tuen Mun land.

First-hand residential property transactions recorded the lowest volume recently. Alex Leung explains that the recent political issue has lowered the purchasers’ incentive, while developers provide different discounts to attracts purchasers.

IPO Valuation of Wework dropped substantially after its submission of prospectus. Stella Law explained the causes of such “Down round IPO” phenomenon for unicorn companies.

The bidding of Kai Tak District 4C No.4 Commercial/Hotel land was closed last Friday. Received 5 bids, all rejected as none achieved the government's minimum price. CHFT comments that the government's valuation is out of reality in the current economic climate.

Kai Tak District 4C No.4 Commercial/Hotel land was re-offered on 20 September. Due to the low price records of similar sites recently and the current market condition, CHFT believes that the value of the site should be reduced by about 30%.

The first second-hand transaction of Green Form Subsidised Home was recorded, with a million dollar profit even after SSD. CHFT points out that as the flat was undertaken by qualified person, it did not violate the intent of the government policy of assisting eligible persons to purchase a flat.

A new government land close to T-plus development, which is famous for its flat sizes and whole block transacted twice, is for sale. CHFT comments construction cost of a small project and forecasts the price of that land.

“Efficiency” and “high traffic” are the key factors of internet startups when profitability has not yet stable. Stella Law shared the valuation method of internet startups with Luckin Coffee as example. Customers’ royalty is a critical factor under DCF projection.

Considering recent social movements and trade wars, Alex Leung estimated sale price of a smaller sized commercial / hotel site would achieve HK$3.4 to 3.6 billion. Yet, the awarded price was far below market expectation.

​In a government land sale in June 2019, prices of the top two bidders were close but other four showed the awarded prices were 16% to 29% above. Alex Leung explains its implication on coming land prices.

In a government land sale in June 2019, prices of the top two bidders were close but other four showed the awarded prices were 16% to 29% above. Alex Leung explains its implication on coming land prices.

In response to SCMP’s enquiry, our Alex Leung commented the expected profit margin of investors upon acquiring a big lot of micro flats, which are under construction stage .

The innovation and uncertainty of pharmaceutical products is a double-edged sword that determines the value of innovative pharmaceutical companies. Stella Law shared the valuation method of innovative pharmaceutical companies with the “Theranos Incident” as an example.

The uncertainties in Sino-US trade negotiations, social disputes, as well as the withdrawal of a commercial land tender all imposed pressure on developers. CHFT estimated that the tender price of a Kai Tak land would be lower than that acquired earlier by the consortium led by Wheelock.

Developers are slowing the pace of releasing new flats into the market and choose to bet on future price increase.  Alex Leung suggested that new supply would come from Kowloon and the New Territories.

On the recently announced policy of acquiring private properties for social welfare purpose, Alex Leung commented that it is inevitable that the market will surge as the property owners generally have no pressure. 

8 biotech enterprises had their stock prices and market values shrunken shortly after listing. Stella Law commented that HKEx should strengthen investor education so that investors can better understand the risks and potentials of the development of biotech enterprises. 

The logistics, trade and technology industries are believed to benefit the most from the development of the Greater Bay Area. Stella Law commented on the responses of a recent survey on the benefits of Greater Bay Area development.