In the past week, the first batch units of New World Development's “State Pavilia” in North Point have been sold out completely, and market commentators unanimously agreed the revival of property market has been coming. However, the good sales records of “State Pavilia” was actually benefited from the low-price promotion strategy. By observing this situation, the property market is still not having the momentum to return back to the upward trend.
Since the coming of the year of 2025, the technology war between China and the United States has had a spillover effect to global
economic development. Two decades ago, there was a renowned investor who repeatedly said, "High-tech brings losses, while low-tech makes money." This motto has always been regarded as a business guideline by Hong Kong investors. In the past three decades, seventy percent of Hong Kong's richest entrepreneurs, ranging from plastics, garment to real estate investment industries etc., have all been accumulating huge fortune from low-tech industries.
Until now, real estate investment in the low-tech industry has produced many billionaires. Whenever the market is low and the investors buy the dip, it is almost certain that it is a short cut to get rich. At present, the property market has been deregulating for three years, the property prices are cheaper, and it attracts some investors buying the dip in regardless of the downside risk.
Recently, many private enterprises' founders were invited to Beijing for meetings to discuss economic development. All of these private enterprises’ helmsmen are the leaders in their relevant technology sector. Indeed, there were no representatives from the real estate industry. Obviously, such an arrangement shows the technology industry will dominate the overall economic development in coming years.
Under this trend, Hong Kong's real estate industry will be difficult to regain its glory which it had before. Now high-tech makes money and low-tech brings losses. In this paradigm change, how should a real estate investor deal with it? In this situation, any investor should still buy the dip and sell when the price is high, or switch track and invest in other industries. This issue deserves careful consideration by most investors.