Simon Yu, Capital Market Sr Manager, CBRE, https://www.linkedin.com/in/simonyu89/
• Over 7 years of experience in commercial real estate; currently specializing in real estate investments. His primary roles are sourcing real estate opportunities and working with different types of clients including property institutions, family offices, and private individuals.
• Strong team player with the ability to translate ideas clearly and effectively to others, ultimately striving for greater collaborations with a strong emphasis in teamwork.
• Strong passion for connecting with individuals and coordinating business events such as career development networking events.
• Flexible; ability to adapt to changing priorities and maintain strong work ethics shown in cases and in the workplace.
• Self-motivated and disciplined individual.
• Trilingual in English, Mandarin and Cantonese.
Inflow has definitely been impacted (i.e., slower) primarily due to the uncertainty – from trade war to social unrest. As COVID-19 is a global pandemic, it has not made a significant impact in comparison. As people are less mobile from all the travel restrictions, so has the inflow of capital. The main challenge for Hong Kong is that great real estate opportunities do not always appear in the market – similar to some other tier-one cities, price gaps are usually wide for core assets. This creates challenges for investors.
In terms of capital outflows, we have been witnessing diversifications through expansions at overseas. Family offices and local developers have been taking advantage of situations like BREXIT for overseas opportunities.
For institutional clients, I still look forward to deals coming in and out of Hong Kong in the short to mid-term as HK being the gateway. Non-Asia funds still want to enter into the China market, as well as the mainland Chinese funds/developers are looking to expand overseas. You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
I think this is rather a personal question, I always feel an urge to learn new things. I think there is a healthy correlation on the more you know, the better/higher likelihood of you solving bigger problems. And the bigger the problem you solve, it is likely that the more successful you become.
Yes, I do feel an urge to learn new things and be open-minded.
You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
Yes, in fact, Greater Bay has been on the topic long ago already. From the recent announcement from the Chinse party, the Hainan free-trade Zone should be the next big thing that goes on from now till 2025.
Yes. When we talk about real estate, I always correlate with demographics and the movement of people. I think by increasing the connectivity of the whole Southern part of China, most real estate in the region would flourish. As Hong Kong is positioned as an international financial metropolis, listed companies will be coming to Hong Kong – people will be travelling in and out to Hong Kong. So immediately, you would have an increase in demand on residential properties as more people will probably need to stay here, a call is a second home or vacation home. As Hong Kong, geographically speaking is small (vs. the rest of China) and very high density, I am not too concerned about the demand. You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
For COVID-19 specifically, most landlords think it is temporary. Hong Kong is a resilient city that has gone through SARS in 2003. Like you hear in the news, retail and hospitality sectors have been impacted negatively. Some landlords have been quite supportive and to restructure their existing leases with tenants as well to some rent reduction – especially for the smaller scale landlords.
For portfolio landlords, in order to release some pressure from the impact, some have decided to off-load some of their non-core assets in Hong Kong. This actually created opportunities for some end-user/occupiers who could now own a real estate instead of lease. Referring to the mentioned, point on limited opportunities, this actually is good news for some investors.
In summary, with the virus situation, I think it enabled landlords to rethink their real estate strategy in general. You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
The short answer is an increase in uncertainty and in the investment market, it is probably not a good thing to have. Again, I believe there are always good and bad for everything – there are always opportunities in every market, though it may be tougher to seek opportunities in general right now as we are have been facing tough times in the past months or almost a year.
My opinion to this is that businesses and individuals will property need to be more adaptive, creative and collaborative. Relatively speaking – comparing with other financial cities in the world, Hong Kong still has strong fundamentals with good support/talents, a decent mixture of East and West. I still believe in the place and the system, so it’s only a matter of time we strive again. You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
Staying relevant to the market and connecting with clients. For my hat, anything relating to real estate, be those tenant movements or new developments, capital investments like the equity market. In short, to channel the right messages to the proper audience in order to create value.
In terms of the physical aspect, our new office layout – the ABW style of working enables us to communicate with colleagues from different business lines more frequently. Coming into the office and going out to meet clients is a typical day for me. You can find more at the interview with Denzity here: https://youtu.be/9QBOCeYEnao.
It depends on whether this is a first hand or second-hand stock – first hand being purchases straight from developers (usually less or no fee from this), this way usually no fees from the buyer. Second-hand stock (from other investors/individuals) then shall probably require some professional fee (to the agent) usually at 1% of the total consideration.
In my opinion, this comes to hand to hand with the developments of the FinTech support as well as HKMA. I think it will not be too long, perhaps in the coming 2 years.
The main difference is whether the buyer is a permanent resident or not – then the rest is quite straight forward laid out in the above link.