OKAY ! This is just blank theory - but maybe there is some truth behind. I am living in a nice estate in the NT - 2 phases built - the first one around 7 years ago finished. So today my wife tells me...hey in Block 9 even without a balcony one flat was sold for HKD 6.6 Mio.....My first reaction was ..."This is fake or scam"...So later I checked the transaction records:
Flat 38C sold for HKD 6.6 Mio in middle of October 2010 (almost 95% profit compared with 1st transaction) - then after more checking: Same Block flat 48C sold for 6.26 Mio in July 2010 (almost 85% profit compared with 1st transaction). My guess it is / was the same owner - superstitious number ending with 8 - almost same 1st transaction date & almost same 2nd transaction for each almost double the price.
So if I am wrong then this is pure speculation:
1) You have a company interested in speculation in property
2) You buy several appartments in the same estate
3) You mostly keep them empty / unoccupied
4) You have a second company
5) At the right moment your company 1 sells the property to your company 2 for an extremly high price compared with the 1st transaction (75% -90% profit)
6) Is this a good or a bad deal ?
7) It is not really a good deal at all - because you are only moving the money from the left side of your pocket to the right side of your pocket
8) But it is a good deal if your companies are involved in property dealing - means you are one of the HK property agents and you are using "con-man" companies or whatever possible abstruse company constellations to handle this kind of transactions.
9) Then it is a very good deal - because your transaction will be listed in one of the pages of a special section in APPLE DAILY or other property gazettes and everybody will say "oh wow the prices are still going up"
10) Multiply this kind of idea / system by 100 - you are already manipulating the market in a decent way.
So why not introducing a scheme to have a register about who is selling & buying:
1) For private sellers / buyers just issue the first numbers of their ID Card
2) For company sellers / buyers issue the first part of the company name or the first 5 digits of their business registration number
This could help to bring some transperancy into the transactions.
Update 17.11.10: Surely if the toilet bowl & seat & water taps are pure gold then the price for this 38C & 48C is maybe reasonable (there are two toilets in each flat & and a lot of water taps)
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