I invested $700,000 in property stocks in my active portfolio. It now shows a loss of about 11% on my invested sum.
My main losses are in Lippo Mall and Koh Brothers. I kept them for their attractive dividend yields (which has now been cut) and their large discounts to the asset values.
My investment in Capitaland and Hong Kong Land used to show large losses but they have now been turned profitable. They also show large discounts to their asset values.
My investment in Country Garden still show a loss, but it has a low price earning ratio and an attractive dividend yield.
I believe that the property stocks are under valued and will recover in price during the next half to a year.
Why it is difficult to get approval for 80 per cent to sign for enbloc? In people's heart, they knew that without a high price, it is not possible to replace back the kind of size they were used to even though their private place is old and worn down. The reserve prices begin to spiral upwards. It becomes a chicken-egg scenario. For the high-up to remind the developers to bid cautiously do not know what is happening on the ground. The GLS will have to come in and show examples that they are willing to accept low land prices. Don't just talk. Lead by examples.
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