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Photographer: Lam Yik / Bloomberg
Photographer: Lam Yik / Bloomberg
Property developer in Hong Kong Far East Consortium International Ltd. hopes to capitalize on a potential mass exodus of citizens to the UK, where it is spearheading a massive urban renewal project.
The British government’s decision to Offering residence to some 3 million people, as its former colony is increasingly under Chinese control and has created a large number of potential buyers.
“We’ve been in the UK for many years and it turns out that more and more people want to invest in the UK today,” Far East CEO Chris Hoong said in an interview. Being a household name could be an advantage, he added.
London calling
Almost 60,000 BNO passports were approved for Hong Kong residents in October
Source: UK government
“It certainly helps,” Hoong said. “Because we are listed on the Hong Kong Stock Exchange, people know us. Especially when a buyer is buying off plan, he wants to make sure the project is delivered. “
Read more: UK gives Hong Kongers 5 passports per minute as exodus looms
The mid-size company is developing more properties in the UK than its larger rivals such as New World Development Co. and China Vanke Co., mainly in Manchester, where it is building the city largest residential renovation project. It has proven to be a timely deal because Manchester has become a popular choice for Hong Kong people seeking beyond London because of its cheaper housing and good schools.
Timely Bet
Far East leads its Chinese counterparts in UK real estate development
Source: Liber Research Community
Tapping into demand from Hong Kongers moving to the UK could help the Far East offset a downturn in its local market as people leave the city. Developer shares have tumbled 30% this year, one of the biggest declines among Hong Kong-listed developers. The Hang Seng Properties Index, which tracks the city’s largest real estate firms, is down 19%.
The firm also builds homes in mainland China, Singapore, New Zealand and Australia, the latter being its largest source of income in the six months ended September 30.
The British government estimates that 123,000 Hong Kong citizens could relocate to the UK in 2021, “which could weaken Hong Kong housing demand and compress rental yields to a new low,” wrote Bloomberg Intelligence analyst Patrick Wong. last month.
(Add a comment from Hoong in the second paragraph.)
