We're building a super chaebol in Hong Kong

“Since that's the case, then I would like to ask Mr. Su a question. I've been pondering this question for a long time and haven't been able to decide. Mr. Su has his own personal insights in business. I wonder if Mr. Su can help me clear up my confusion?” Lin Baixin asked Su Cheng at this time, just like a student seeking guidance.

Lin Baixin was already an old man in his sixties, while Su Cheng was just a young man in his early twenties.

If this scene were seen by others, they would definitely find it very strange.

An old man in his sixties asking a young man in his early twenties for advice?

“I wouldn’t dare to accept the title of ‘teacher.’ You have been in the business world for many years, and your experience is much richer than a young man like me. However, Mr. Lin, you can state your question, and we can discuss it together.” Su Cheng said with a smile.

“When developing real estate, which method will generate more profit in the future: always selling and never renting, or developing and selling simultaneously, and then using the recovered funds to continue developing new properties?” Lin Baixin asked earnestly.

“Personally, I believe that in Hong Kong today, whether you are developing residential properties or industrial buildings, if you have the capital, you don’t need to rush to sell. I even think that Hong Kong's property market will increase dozens of times over in the future.

For example, the current price of industrial buildings is several hundred Hong Kong dollars per square meter. Mr. Lin should mainly be investing in this area, right? I think that in the 1980s, it will be possible to sell them for several thousand Hong Kong dollars per square meter, and in the 1990s, even over ten thousand Hong Kong dollars per square meter. If you can insist on only renting and not selling, Mr. Lin's assets should be able to multiply many times over in the future.

Renting out industrial buildings can also generate a steady stream of income each year, it’s just that the speed is slower. However, the fixed assets are always yours, and when you urgently need funds in the future, you can sell them at any time.

On the other hand, if funds are tight and you need to quickly recover capital to reduce risk, you can only take the path of developing and selling simultaneously.

Therefore, I highly recommend that Mr. Lin hold on to and rent out the industrial buildings that he is developing.

This is just my personal opinion. If I said anything wrong, Mr. Lin, please forgive me.”

Su Cheng spoke frankly and truthfully. Anyway, it was just his personal opinion, and it was up to others whether they believed it or not.

Hong Kong's real estate market was very large, and Su Cheng never thought about monopolizing it.

Even if he didn't say these things, a large number of companies would still enter the real estate sector.

For example, Hutchison Whampoa Property is considered one of the top ten real estate companies in Hong Kong, and it has invested in and developed many residential and industrial buildings.

After Su Cheng took over Hutchison Whampoa, he gave Wei Li a lot of advice. Among them, Hutchison Whampoa Property, in addition to developing and selling residential properties simultaneously, only rented out industrial buildings and commercial buildings, and did not sell them.

Although it is more difficult to recover costs through rent, it is not impossible. At most, it will take ten or eight years to recover the costs. By the time they are sold in the future, the price of the buildings will have increased many times over.

After discussion between Wei Li and the general manager of Hutchison Whampoa Property, they finally accepted these suggestions.

Because only foreigners who have lost confidence in Hong Kong would not believe in the future of Hong Kong's property market.

And Wei Li and others who firmly believe in Hong Kong's unlimited future potential naturally would not have this problem.

Of course, in this situation, the development speed of Hutchison Whampoa Property will obviously slow down, which will also affect Wei Li's year-end bonus.

However, Su Cheng promised Wei Li that if there were no major mistakes in the development of Hutchison Whampoa, he would continue to support Wei Li's management team.

“Mr. Su, you are simply my confidant! I have always thought so. Many people in the group oppose my approach, feeling that the speed of recovering funds is too slow. Moreover, they don’t know what the future of Hong Kong's property market will be like if we keep holding on. However, I have overcome all difficulties and have always insisted on taking this path.

Now, just relying on rent, I receive more than 60 million Hong Kong dollars in rent every year. Moreover, the money we earn in the textile industry each year is basically invested in the real estate industry, so this rent is increasing every year. If we sell all the buildings in our hands, we can cash out more than one billion Hong Kong dollars without any problems. However, I think this is just a small profit. If we keep holding on, this billion-dollar property can become a ten-billion-dollar property or even more!” After hearing Su Cheng's words, Lin Baixin seemed to have met his confidant and was very happy.

“I think that since we are doing business in Hong Kong, we must have confidence in Hong Kong's future. If we are afraid of this and afraid of that, and worry about Hong Kong's future prospects, it is better to withdraw our investment and leave Hong Kong to invest elsewhere. Therefore, there is no need to worry about whether Hong Kong's future economy will collapse or not.

Hong Kong's future economy cannot always be smooth sailing, but this is the normal performance of an international metropolis, just like the stock market. There is a bull market, and there will naturally be a bear market. It is impossible for a bull market to always exist, that is just a pile of bubbles. Therefore, we should stick to our original intentions and do what we think is right.” Su Cheng continued to smile.

“Mr. Su, you are so young, but you are so open-minded and have such a long-term vision. I finally know why Mr. Su was able to become a well-known tycoon in Hong Kong at such a young age. With your knowledge, you have already surpassed too many businessmen.” Lin Baixin said with great emotion.

Looking at the young man's words and deeds in front of him, and comparing them to his son who was making tea, who usually spent more time as a playboy, Lin Baixin suddenly felt a little frustrated. If Su Cheng was a junior in his family, how great would that be! Then his successor would be set!

Lin Baixin admired Su Cheng more and more.

This knowledge, this performance, it's simply incomparable!

At the same time, he was even more determined in his own ideas and decided to follow his already established plan to develop the real estate industry step by step.

“Mr. Lin, you are exaggerating too much. This is just my personal opinion, and it does not mean that the future of Hong Kong will really be like this. Don't blame me if you don't make money by then.” Su Cheng said with a smile.

“Not at all. I originally just wanted to try to ask Mr. Su for advice, but I didn't expect to get an answer that made me happy. That's enough. It shows that I'm not the only one who thinks this way. Even a tycoon like Mr. Su thinks so. I am not alone!” Lin Baixin stood up, took his teacup, toasted Su Cheng, and then drank it all in one gulp.

Su Cheng also stood up, holding his teacup, to return the toast.

In a few years, Hong Kong will experience a real estate downturn, but as long as it survives this downturn, Hong Kong's property market will further explode. Su Cheng also plans to lay out the entire Hong Kong at that time and become Hong Kong's largest landlord.

However, that will have to wait until after 1982. It is now only 1978, and Su Cheng still has a few years to prepare.