Hopkins' Hanke: Buy Chinese real estate
Johns Hopkins prof. Steve Hanke, often the contrarian, recommends Chinese real estate even as some analysts detect a bubble. From his latest Forbes column:
In China, Hong Kong real estate remains an attractive place to invest in. For seven consecutive years the supply of new private residential units has declined. This supply crunch, coupled with a strong demand, make Kerry Properties (683 HK, $4.9) and Sino Land (83 HK, $1.9) look attractive, particularly since both trade at significant discounts to their net asset values. (Both price quotes are in U.S. dollars.)
Comments
If China allows the Yuan to float you're looking at a 20-40% appreciation in any Chinese stock measured in USD due to exchange rate alone. The peg is making everything there artificially cheap in USD from Walmart junk to real estate stocks.
Posted by: Josh Dowlut | March 12, 2010 1:01 PM
@ Josh Dowlut:
HK does not use Yuan, it uses HKD (Hong Kong Dollar) because of "One country, two system", HK operates under a separate political and economic system than the Mainland.
Hong Kong is the hottest real estate market in the world. HK property developers are the largest investors in Shanghai and overall largest foreign investors in real estate in Mainland China too.
Posted by: JJ Watson | March 13, 2010 1:37 PM
I have just read that column of Forbes which you have given here and I came to know so many new things from this.That is interesting for me to know that Hong Kong real estate is an attractive place to invest in.
Posted by: dean graziosi | March 19, 2010 3:30 AM