• RE: What are some tips and insights you can share regarding investing? Also, what should I be aware of when it comes to investing locally and abroad?

    Key to execute good research and real estate investment & due diligence include:
    • Open-minded & resourceful – some resources we use include government website, Rating and valuation could be a great example track rents, not only we should be able to be high aware of the market (by reading market news, Bloomberg, Reuters, SCMP)
    • Analytical & insightful – i.e how to do we spot trends and analysis from plain graphical lines
    • Quantitative & Qualitative – both using numbers and existing knowledge to give insights to out brokers
    At the end of the day, you statt off real estate locally 🡪 Look into gov’t regulations, such as stamp duty taxes. Look into incoming supply and demand and see if there will be a mismatch, if so, which sector? Etc etc
    Abroad 🡪 Depends where, I won’t comment on emerging markets, but as a researcher, developed markets provide greater real estate transparency

    posted in Real Estate Tips
  • RE: What was your experience conducting research in the Greater Bay Area (emerging market)?

    In simple terms, doing research in GBA is very different than in Hong Kong. The greater china real estate research is the different in the sense that market transparency is not as great as Hong Kong. Majority of the real estate market information is more difficult to retrieve. Though there is this platform called CREIS, which is heavily priced subscription allowing real estate practitioners to gain access to land values, and particularly for the residential transaction. But the price tag is quite hefty and the data is at times not so accurate. That being said, accessing real estate data in GBA or GC requires lots of labour work to gain the raw data. For instance, talking to brokers, information from clientele or even conducting actual site visits.

    So when I was working and travelling between the two core cities Shenzhen and Guangzhou, my team members and I have to visit a lot of undeveloped office sites and see what their progress statuses are. Good thing is that we had a company car, so we can go to this development site free of hassle. As for retail, we have to walk through different malls under our vacancy basket to guesstimate the approximate vacancy rate. So these might take more time to gather, as opposed to information that is already online. At the end of the day, doing research in China in generally time consuming and requires deep connections with local brokers/investors to attain proper insights.

    If you would like to learn more about how to research real estate properly, I recently did an episode with Denzity: https://youtu.be/ZHzeYX_6sjk

    posted in Real Estate Tips
  • RE: Would you mind providing a walk-through on the process of assessing (A) a development project, (B) new built, and (C) second hand asset?

    Development Project – market news, RCA, land department for buy sale.
    New Built - Same as a development project, or at times we would receive information from market intel that would otherwise not be able available in the market.
    Second-hand asset, mostly in RCA and EPRC. I think because the supply for various properties such as office, retail and industrial are relatively low in Hong Kong compare to other countries, we often use historical comparables or transaction as a way to provide insights for research forward.

    If you would like to learn more about how to research real estate properly, I recently did an episode with Denzity: https://youtu.be/ZHzeYX_6sjk

    posted in Real Estate Tips
  • RE: What are some methods or resources that I should utilise when it comes to conducting market research and analysis?

    The sources mentioned previously would also be helpful. I think besides some of the sources, interacting closely with local brokers and consulting agents on getting deeper insights beyond just the data indication would also be greatly useful. On personal level, read lots of market news and things related to the economy, and also use both qualitative and quantitative analysis.

    Look for specific indicators, real estate itself is related to many sectors, employment, GDP, stock prices, if you have the time do a DIY forecast models such as regression analysis.

    If you would like to learn more about how to research real estate properly, I recently did an episode with Denzity: https://youtu.be/ZHzeYX_6sjk

    posted in Real Estate Tips
  • RE: Being part of a professional firm, what are some resources and information you have access to that a typical investor may not?

    As a researcher, you utilised a diversified range of resources to both assess and verify data, some of the most familiar sources include but withstanding:

    •   Use our database of course
      
    •   Real Capital Analytics – Mostly to analyse capital market transaction data
      
    •   Hong Kong government platforms – Buildings Dept, Lands Dept, R&V, which are available to the public actually
      

    If you would like to learn more about how to research real estate properly, I recently did an episode with Denzity: https://youtu.be/ZHzeYX_6sjk

    posted in Real Estate Tips
  • RE: Would you mind explaining what a real estate researcher does and what a typical day would be?

    Typically I would personally start with reading lots of market news, like Bloomberg, Reuters, SCMP, HKEJ and assess the market and economy. Then after that, it depends on what kind of research project or task we are working.

    Recently, we have just finished our second quarterly reports on 4 sectors. So every quarter we have to draft reports to present the company, and every half year we conduct a press conference for our company and our view on the current real estate market.

    But primarily we are involved in 4 core sectors:
    Office – understanding the tenancy arrangements, rental changes, vacancy rates. Defining who are the market players in the industry
    Retail – Understanding the retails sales, the incoming visitor travellers (particularly we have seen dramatic changes over the past year due to both the social protest and COVID-19)
    Industrial – Understanding different types of logistics performances such as warehouse, factory and now the emerging data centres
    Capital Markets – provide a lot of data insights, by monitoring the prices and macroeconomic market conditions

    If you would like to learn more about how to research real estate properly, I recently did an episode with Denzity: https://youtu.be/ZHzeYX_6sjk

    posted in Real Estate Tips
  • RE: What is the typical yield on dc compared to traditional industrial buildings? how long are lease contracts for operators typically for? What's the trend overall in the demand for data centres? how will this move over the next 5-10 years?

    The market range is about the 3.5-4 % yield, which is higher than traditional grade A offices in Hong Kong. And may continue to rise to 4% this year. Rents in most DCs have already gone up 5-10 percent.

    The lease period for data centres ranges from eight to 10 years or longer, which will likely translate into stable recurring income for operators. > We believe the stable streams of income makes data centres attractive investments.

    Few exciting trends yet to come

    Remote office solutions and cloud computing
    The coronavirus outbreak has forced world’s largest work-from-home experiment, triggering the acceleration of digitalization and automation of international banks and MNCs. Corporates, with a higher proportion of staff working from home, will likely increase the use of tools such as Microsoft MyAnalytics that collect data for tracking the efficiency and wellbeing of staff working from home.

    Online retail and e-commerce
    Consumer demand is increasingly shifting towards online shopping, and retailers should invest in online shopping platforms, enhancing omnichannel distribution strategies, as well as tools for data collection to analyse shopping patterns

    Green and sustainable data centre comes to the fore
    Data centres are energy intensive and providing all that power can be bad for the environment In response, data centre operators such as Equinix 17 has adopted renewables centric practices by sourcing 90 of their electricity sustainably, and they are on a committed path to achieve 100 clean and renewable energy Many data centre operators are increasingly abiding by the UN 2030 sustainability agenda 18 and Environmental, Social, and Governance ( principles, where profitability and sustainability are no longer perceived as a competing interest

    Sometimes it’s good to supplement expert advice with your own research as well. Recently I did an episode with Denzity on how you can do real estate research like a pro. You can check it out here: https://youtu.be/ZHzeYX_6sjk

    posted in Other Topics in Innovation
  • RE: What are the potential development sites for data centres in Hong Kong?

    Tseung Kwan O is traditional a strong clusters for Data centers
    Kwai Tsing is also an ideal location for near term opportunities – Equnix and Grand Ming have already entered the market.
    Lok Ma Chau
    Lok Ma Chau is close to the Hong Kong-mainland China border, which may be desirable by tech companies just across the border such as Tencent, Baidu, and Huawei. The proposed 87-hectare Hong Kong-Shenzhen Innovation and Technology Park in Lok Ma Chau, specifically catering to R&D, technology and start-up incubators, will likely benefit the development of data centres.

    Tuen Mun
    Tuen Mun serves as a strategic location, with the Tuen Mun-Chek Lap Kok Link scheduled to be completed in 2020. This area is suitable for longer-term redevelopment opportunities, although the land premium is one of key factors determined by investors and developers. We recommend investors focus on long-term growth, while expecting stable returns once developed, despite the high cost of market entry.

    Sometimes it’s good to supplement expert advice with your own research as well. Recently I did an episode with Denzity on how you can do real estate research like a pro. You can check it out here: https://youtu.be/ZHzeYX_6sjk

    posted in Other Topics in Innovation
  • RE: Singapore is getting popular with data centre type assets. What’s the overall landscape in Asia and how is HK positioned? Who are the major players globally and in the region?

    As a gateway to Southeast Asia, Singapore shares similar advantages including robust data privacy regulation.

    Singapore also edges Hong Kong with the fastest internet speed among the APAC region, with fewer unplanned power cuts, which may shift the regional data centre demand away from Hong Kong
    Shortage of Land supply in Hong Kong 🡪 The industrial revitalisation 2.0 would likely play a positive factor
    Sometimes it’s good to supplement expert advice with your own research as well. Recently I did an episode with Denzity on how you can do real estate research like a pro. You can check it out here: https://youtu.be/ZHzeYX_6sjk

    posted in Other Topics in Innovation
  • RE: I assume the electrical power grid would affect the potential profitability. Is there any difference between the Hong Kong Island side and Kowloon side? if so, is there a preference and do companies normally locate in both?

    I think hong kong in general is quite a good place for data centres
    Reliable power supply
    Low electricity cost
    Lot of network connectivity
    Stable climate (relatively)

    Reliable Power supply
    CLP Power Hong Kong Limited (CLP), one of two electricity suppliers in Hong Kong, achieves over 99.9%8supply reliability for Kowloon and the New Territories.

    Low electricity costs
    HK (CPL Power) charges the lowest electricity tariffs among major cities such as Singapore, Sydney, London and New York, at only HKD1.15 (USD0.13) per kilowatt-hour (kWh)9.

    Network connectivity
    Over 250 internet service providers licensed to provide broadband services in HK10. HK has the world’s second fastest internet download speed over fixed broadband (170 Mbps)11.

    Data protection
    HK has implemented The Personal Data (Privacy) Ordinance to protect personal data collection. This attracts demand from mainland firms emphasizing the internationalisationof their service.

    Sometimes it’s good to supplement expert advice with your own research as well. Recently I did an episode with Denzity on how you can do real estate research like a pro. You can check it out here: https://youtu.be/ZHzeYX_6sjk

    posted in Other Topics in Innovation