Share
HONG KONG: Li Ka-shing failed to answer the one question on everyone’s lips on Wednesday: Is it a good time to buy property?The property magnate was talkative and smiling at the results announcement for his flagship companies Cheung Kong (Holdings) and Hutchison Whampoa, but stayed guarded in his answers and warned of rising construction costs.
Unlike a year ago when he said it was time to consider buying real estate and stocks, Li yesterday was very cautious.
“(Last year I) said if you have extra money and if you didn’t borrow a lot to buy a flat, it is the right (time),” Li said. “Everyone who purchased at that time has earned money.”
On current property prices, Li said there were two points to consider. “Firstly, the land price, I think, is stable. Secondly, the construction cost has rocketed. In a low-interest rate environment, it’s not surprising to see inflation.”
But he did not say if it is the right time to enter the market.
Li said he would never encourage others to take risks, therefore he seldom commented about stocks.
“I would not say anything that makes me appear in the headlines... that’s what I am most afraid of,” he laughed.
The government has been criticised for not doing enough to help people enter the home market as prices surged over the last 15 months, but Li showed his support for government officials.
“Hong Kong government (has) already tried its best” in stabilising property prices, he said, and “the government has done a nice job”.
“Nobody (is) satisfied (with) any government. Can you tell me a country where the people are satisfied with their leaders?”
Li did not comment when asked if the Home Ownership Scheme should be resumed, but favours an increase in the construction of public rental housing for lower income groups.
Asked repeatedly about his views on the property market, Li passed most questions to his elder son Victor Li Tzar-kuoi, who said Hong Kong always faced limited flat supply but that this had been aggravated by strong demand in the last two years.
“The demand is huge,” he said. “Nine out of 10 flat buyers who held their properties for a long time have earned money in the past decades. And I think this formula will not change.”
Both Lis said a minimum wage of HK$23.40 (RM9.86) per hour, as proposed by the Hong Kong Chamber of Small and Medium Business, would have “very small impact” on the two companies, which employ around 300,000 workers.
“We possibly have a very, very small number of staff earning below that amount,” Li Ka-shing said. “We will be co-operative and we are not worried about a minimum wage... It would be the best proposal when it is acceptable to everyone.”
The chamber proposed the pay level based on the latest Census and Statistics Department survey, a key reference point in determining the minimum wage, which shows that Hong Kong’s median hourly pay (excluding government workers and domestic helpers) is HK$58.50.
The chamber argued that the minimum wage level should be 40% of the median hourly pay, similar to the level of other places. Unions are demanding an hourly rate of HK$33.
The Hong Kong General Chamber of Commerce was finalising a submission to the government in which it would propose a minimum wage of HK$24 to HK$25 an hour, people in a position to know said last week. — South China Morning Post
