Sou Hu Cai Jing·2025-08-01 21:36Core Viewpoint - Li Ka-shing's Cheung Kong Property is selling 400 residential units in the Greater Bay Area at significantly reduced prices, with the cheapest unit priced at 400,000 yuan, indicating a strategic move to capitalize on market conditions and demand from Hong Kong buyers [2][5]. Group 1: Property Sales Strategy - The properties being sold are primarily older developments, with many having been acquired at low land costs years ago, allowing for substantial profit margins even at reduced prices [5][8]. - The pricing strategy is attractive, with units in Dongguan's Haiyi Haoting seeing price drops from 44,000 to 18,000-36,000 yuan per square meter, effectively halving the price [6][8]. - The sales are driven by a surge in demand from Hong Kong residents, who find the price difference compelling, as new homes in Hong Kong average around 200,000 yuan per square meter [5][6]. Group 2: Market Trends and Demand - The trend of Hong Kong residents purchasing properties in Guangdong has been increasing, with 3,341 transactions recorded by June 2023, amounting to 3.08 billion yuan [5][6]. - The development of the "one-hour living circle" in the Greater Bay Area is facilitating this trend, as more Hong Kong residents are willing to commute for work and leisure [5][8]. - The shift in buyer motivation from investment to self-occupation is notable, with buyers now prioritizing living conditions and amenities [8]. Group 3: Financial Strategy and Asset Management - The primary reason for the aggressive selling strategy appears to be the need for cash flow, as Cheung Kong's sales revenue in mainland China is projected to drop by 87% in 2024 compared to 2020 [7][8]. - Selling properties allows the company to mitigate risks associated with holding onto unsold inventory, especially in a market where some cities have inventory turnover periods exceeding 30 months [8]. - The sale of properties aligns with Li Ka-shing's long-standing strategy of capitalizing on favorable market conditions while managing financial risks effectively [12][13]. Group 4: Broader Strategic Adjustments - The sale of port assets by Li Ka-shing in recent years reflects a broader strategic shift in response to changing global trade dynamics and the need to reallocate resources to more promising sectors [9][10][12]. - The funds generated from asset sales are being redirected towards investments in technology and renewable energy, indicating a proactive approach to adapting to market changes [12][13]. - Overall, the company's actions demonstrate a calculated balance between risk management and seizing short-term opportunities in the real estate market [13].