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$13,000 and $14,000 per sqft, 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 others land with full Victoria Harbour view sold before. 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.