Chapter 163: Entering the Real Estate Market
Central's properties came with their own hierarchy—one determined by location and size.
Even by the 2020s in Yang Wendong's previous life, when Hong Kong had the highest real estate prices in the world, it wasn't too difficult for a wealthy person to buy a small shop, a modest office unit, or even a luxury apartment in Central.
But buying an entire building or a large shopping mall? That was almost impossible. Sometimes, even in ten or twenty years, such opportunities might not appear.
For instance, during the 1983–84 real estate crisis, even when Land Holdings was on the verge of collapse under debt pressure, it didn't consider selling its buildings in Central. It wasn't until 1985, when it could no longer withstand the financial burden, that it sold the Hongkong Electric Company to Li Ka-shing.
Though Central wasn't as developed yet in the 1950s as it would be decades later, acquiring a full-scale building even now was still extremely difficult.
Su Yiyi asked curiously, "What kind of big money are you talking about? Something that earns more than Post-it notes?"
"If everything goes well, maybe," Yang Wendong smiled. "Liu Chong Hing Bank wants me to get into the real estate business."
Post-it notes were certainly profitable, but as a relatively small player, Yang needed to rely heavily on distribution channels to scale globally, which meant giving up a portion of profits.
Plus, there was always the issue of piracy—not just for Post-it notes, but also for his other products.
Becoming a mega-profitable global brand like 3M required not only innovation, but also immense resources and backing from the U.S. government—something Yang didn't have.
Even so, carving out a piece of the pie was enough to make him one of the most promising tycoons in Hong Kong.
But real estate was different. If you bought a building, the profits were all yours. With leverage and an understanding of market timing, the returns could rival or exceed those of industrial manufacturing.
Su Yiyi laughed. "I still remember two years ago when we went to see Wang Zhixian, and you said you wanted to buy a building in Tsim Sha Tsui. And now you're talking about Central!"
"The Hong Kong Chinese Daily building doesn't really count as a major building," Yang smiled. "But it's just past noon—come on, I'll take you to see Central. If you like a building, we'll figure out a way to buy it later."
"Really?" Su Yiyi asked with a smile.
Yang nodded. "Of course. Or we'll build one just as luxurious."
Buying property in Central was hard, but in this era, constructing one from scratch was a bit easier. The main issue was land—Central's core lots were already mostly claimed, even in the 1950s.
Land auctions in those key areas might only happen once every year or two, and competition was fierce. But if Yang truly entered the real estate game, he'd have a shot.
Buying land was, relatively speaking, easier than directly purchasing a completed building.
"I'm in," Su Yiyi said happily. "But let me put on a bit of skincare first."
"Sure." Yang nodded.
Once wealth increased, everyone's lifestyle improved. Even people like Zhao Liming and Lin Haoyu now had homes and cars—and were starting to pursue new relationships.
As for Yang himself, while he didn't live lavishly, he didn't skimp on life's pleasures either.
Su Yiyi remained modest in her habits, but she'd still picked up a few skincare and basic beauty products. After all, every girl wanted to look good. As long as it didn't cross into extravagance or gambling, Yang didn't mind.
This time, Yang drove himself, taking Su Yiyi to Central.
For safety, bodyguards followed in separate vehicles. Once they arrived, the guards would discreetly remain nearby or step in if needed.
By around 12:15, they arrived at their destination.
Getting out of the car, Su Yiyi rubbed her stomach. "I'm starving. The ferry traffic was crazy."
Yang shrugged. "Can't be helped. It's the only way across Victoria Harbour."
Hong Kong wouldn't have its first cross-harbour tunnel until 1972. Until then, all people and vehicles had to travel between Hong Kong Island and Kowloon by boat.
The ferry business was monopolized by the Star Ferry Company under the Wharf Group. As a proper capitalist enterprise, they never kept excess capacity, which meant delays and congestion were common. If not for strict government price controls, tickets would've been even more expensive.
"Let's get lunch?" Su Yiyi suggested.
"Alright," Yang smiled. "There's a steakhouse upstairs with a great view. You can see half of Hong Kong from there."
"Sounds nice," Su Yiyi beamed. "I've tried learning how to cook steak before, but it's so hard to get it right."
Yang laughed. "Steak's more of a Western thing—good occasionally, but nothing beats Chinese cuisine. If you really want to learn cooking, just focus on Chinese food.
There's a whole world of flavors across China's many provinces."
"Okay!" she nodded.
They soon reached the restaurant, had a hearty meal, then went to a nearby cinema to catch a movie.
After the film, Su Yiyi said, "Dong-ge, I don't know if it's just my nose acting up, but I felt kinda uncomfortable in there."
"Too stuffy? Bad smell?" Yang asked.
Even in Central, cinemas of this era were all about size—one massive auditorium, one screen, and over a thousand seats.
That was largely because there weren't that many films being produced, and screening equipment was expensive.
Still, with so many people packed into one space, hygiene wasn't great.
"Maybe," Su Yiyi said uncertainly. "It just felt stifling."
"Yeah, Hong Kong cinemas are kind of like that. Not great," Yang agreed.
After nearly two years in Hong Kong, Yang had been to plenty of theaters. Not a single one had decent conditions.
Seeing Yang in thought, Su Yiyi tugged his sleeve and asked, "What are you thinking?"
Yang smiled. "Yiyi, what if we built a luxury cinema—less crowded, more comfortable—with tickets priced higher, say 3 to 5 dollars? Would you be willing to pay for that?"
"If it's more comfortable? Definitely," she said.
Yang grinned. "There are plenty of well-off people like you in Hong Kong. Maybe this really could be a market opportunity."
He had never seriously considered real estate before, but now that Liu Chong Hing Bank had offered him a huge credit line—and knowing where Hong Kong's property market was headed—he'd be a fool not to get in.
He also knew that starting in 1966, Hong Kong real estate would crash hard. So there were only two viable strategies:
Sell pre-construction units quickly to cash out.Acquire properties with long-term value—even during a crash, they'd be worth holding.
After all, the crash of 1966 was only a crash compared to the 1964–65 peak. Compared to now, prices might still be higher.
Su Yiyi was quick to catch on. "Dong-ge, are you thinking of investing in cinema chains?"
"Yeah, I'm considering it now," Yang smiled. "Hong Kong's movie market isn't small, and I already have a media company. Cinemas and films are part of the media ecosystem.
That way, with one investment, I can dip into both real estate and media. It's a good deal."
"Cinemas count as media?" she asked.
"Of course," Yang said. "One of the core functions of media is delivering information to the public. Films do that too—albeit less directly. But cinemas? Think about how many ads you see before the movie even starts."
"Oh, right!" Su Yiyi nodded.
"Plus, cinemas need to be in high-traffic areas," Yang added. "Perfect fit for real estate investment."
The next day, Yang returned to the company and called for Wei Zetao. After catching up on factory operations, he said, "Old Wei, get in touch with the headhunting firm. I want to hire someone who specializes in real estate."
"Got it," Wei said. "Mr. Yang, are you planning to enter the property market?"
"I'm thinking about it," Yang nodded. "I wasn't in a rush before, but with Liu Chong Hing offering such a generous credit line, it'd be a waste not to use it.
Our factories—especially the Post-it line—are growing steadily. Most of the other products are outsourced, so they don't need much capital."
The only industries that could absorb massive amounts of capital were shipping, real estate, and the stock market.
Shipping was too complex and capital-intensive right now. Even in the future, it would mainly serve his manufacturing exports—like BYD using ships to export its cars.
And the stock market? Too early. The Hang Seng Index hadn't even been created yet.
"Alright, Mr. Yang. I'll get on it right away," Wei replied.
Yang added, "Also, prepare the paperwork to register a new company. We'll call it Changxing Real Estate."
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