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Hong Kong property hunters grab bargains in wake of protests

Bloomberg
Bloomberg • 4 min read
Hong Kong property hunters grab bargains in wake of protests
(Sept 16): It looked like the perfect investment opportunity. A mostly vacant shopping center with scant competition serving a middle-class neighborhood far from Hong Kong’s city center. With a makeover, Wang Tse thought, there could be good foot traff
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(Sept 16): It looked like the perfect investment opportunity. A mostly vacant shopping center with scant competition serving a middle-class neighborhood far from Hong Kong’s city center. With a makeover, Wang Tse thought, there could be good foot traffic, but the asking price was too high.

That was in 2017, and property tycoon Li Ka-shing had just sold a skyscraper for a record US$5.2 billion ($7.1 billion). Against such a buoyant backdrop, the shopping-mall seller refused to budge for close to two years.

Now, the city’s worsening anti-government protests are weighing on the economy, and the commercial property market. Fitch Ratings downgraded Hong Kong for the first time since 1995 last week as large-scale demonstrations unnerve investors and raise the prospect of capital outflows.

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