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Forget property, buy developers' shares

The Standard
Forget property, buy developers' shares - property developers - Henderson Land - Hong Kong

Developers' stocks are better investments than property, says Henderson Land Development (0012) chairman "Uncle Four" Lee Shau-kee - adding that some could double in value in the medium term.

Lee - dubbed Asia's Warren Buffett - cited a query by a friend. "She asked me whether she should buy a home with HK$10 million her boyfriend gave her," he said. "She may enjoy a capital gain of 20 or 30 percent in two or three years. But she could make an even better return in stock investment by getting margin financing, as then her capital could rise to HK$40 million.

"The short supply in recent years caused home prices to rise, but that will reverse in the future. In just six months, as many as 10,000 private housing units will be on sale and, together with public and subsidized housing, I don't see home prices growing further by the year end." Lee is also not optimistic on the luxury housing market. When the economy is strong, rich mainlanders spend generously but this is not the case anymore, he said.


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