Chapter 244: Securing the "Land King" and Meeting Ho Ying-dong
"No wonder the Hong Kong government is requiring a hotel to be built on this 'land king' site," Yang Wendong remarked with a slight smile as he arrived at the Peninsula Hotel. "In this whole city, the only real high-end hotel is the Peninsula. The others just don't measure up. Now even property auctions are being held in its conference hall."
Beside him, Zheng Zhijie replied, "Yes, Hong Kong is seriously lacking luxury hotels. I've heard that the government has asked several British conglomerates to invest in the hospitality sector here. They're also trying to attract international hotel chains."
"I've heard the same," Yang nodded.
In his previous life, one of the most famous hotels in Hong Kong—the Mandarin Oriental—was founded by the Jardine Group, likely at the government's urging to develop a luxury brand. Other international hotel chains would also begin entering the market during this era.
Zheng continued, "Apparently it's part of Britain's vision. They want to make Hong Kong the crown jewel of their empire in Asia. That's good news for us property developers."
"It certainly is," Yang said with a laugh, saying no more.
It was true that the British were serious about building up Hong Kong. With the U.S. constantly trying to undermine the Commonwealth's trade bloc, any economically underperforming member would threaten the cohesion of the alliance.
Even though the UK had allowed Hong Kong financial independence, no longer collecting direct tax revenue, that didn't mean they weren't profiting. British capital controlled large swathes of Hong Kong's economy. Stronger local economic performance meant higher returns for them.
And if everything came down to profit, then as long as Chinese businesses seized the right opportunities—especially in real estate—they could ride the wave too.
Once inside the auction hall, Yang and his group were ushered in discreetly, avoiding the media. Most of the attendees were Westerners, with only a few Chinese faces.
"Mr. Yang, over there is Ichiro Yagyu, the Hong Kong branch head of Japan's Sumitomo Realty," Zheng whispered, pointing discreetly.
"A Japanese guy? I thought he was Chinese at first," Yang chuckled.
He had been scanning the room for Chinese representatives and had nearly mistaken Yagyu for one of them.
Zheng then gestured toward another direction. "That tall gentleman is Mr. John Keswick from the Land Development Corporation. He's a member of the Keswick family and oversees Jardine Matheson's real estate operations in Hong Kong. Over there is Swire's representative…"
One by one, Zheng introduced the various British conglomerate reps in attendance.
"So all the big players in Hong Kong's real estate scene are here," Yang noted.
"Yes. And some mid-tier foreign firms as well," Zheng added. "That's Mr. Stone from the Amda Group… and that's Sir Keith Tison, head of Hutchison…"
"Keith Tison?" Yang looked his way.
In the early '60s, Hutchison wasn't yet among the top four foreign firms in Hong Kong. It still lagged behind Jardines, Swire, and Wheelock. But it was this very Keith Tison who would transform Hutchison into a future British powerhouse. Although he was known for being overly ambitious, his abilities were indisputable.
After Zheng finished listing off the Western attendees, he moved on to the few prominent Chinese families. These included the Ho family—once the wealthiest Chinese family in Hong Kong—and a few others who had made their names in the 1930s.
One name stood out in particular.
"Mr. Yang," Zheng said, "that's Mr. Ho Ying-dong. He was the one who invented the concept of presale and floor-by-floor apartment sales, which revitalized the entire Hong Kong property market.
Strictly speaking, without his innovation, even Changxing Real Estate wouldn't have grown this quickly."
"True," Yang nodded. "It's a pity those business models can't be patented—otherwise, he'd already be the richest man in the world."
In his previous life, many unfairly blamed someone else for Hong Kong's notorious "shared area" and "presale" systems. But these were, in fact, Ho Ying-dong's creations.
Before the 1950s, entire apartment buildings were sold whole, typically to wealthy landlords who then rented out units to the public. Because a whole building was expensive, few could afford to buy. The market remained flat.
Ho revolutionized the industry by proposing floor-by-floor sales and persuaded the government to issue ownership certificates for individual floors. The market exploded.
In the process, the concept of "shared area" emerged.
Later, Ho realized that cash flow was too slow and invented the presale model. For a project costing $3 million, he only needed to invest $130,000. The rest came from buyer deposits and bank loans. He could make over a million in net profit on each project.
Thus, Hong Kong's property boom truly began…
Zheng chuckled. "I've heard many other countries started copying the presale model too."
"Mm." Yang nodded. But he didn't approach Ho. There was no need to force an introduction.
The auction hadn't started yet. Attendees were chatting with acquaintances. Yang found a familiar face from Standard Chartered and made small talk.
Before long, Ho Ying-dong himself walked over.
"Mr. Smith," Ho greeted with a smile.
"Mr. Ho," Smith replied. "You two know each other, right? I won't need to make introductions?"
"Yes, we do," Yang said. "Mr. Ho's name is legendary in the property world."
"Haha, Mr. Yang is too modest," Ho replied. "You're the real role model for Hong Kong's Chinese entrepreneurs now. From nothing to a cross-sector empire covering industry, real estate, and shipping—everyone admires you."
"You flatter me, Mr. Ho," Yang replied. "Are you here today for Queen's Road No. 2?"
"No," Ho shook his head. "I'm more interested in a few of the residential plots being auctioned earlier. Queen's Road is limited to hotel development—not really my thing. Are you here for that one?"
"Yes." Yang nodded. "Then we're not competitors today."
This auction had more than one lot. The Queen's Road plot—the "land king"—was the highlight, but there were also seven or eight residential plots across Hong Kong Island and Kowloon, along with some smaller commercial lots in Causeway Bay, Wan Chai, and even some industrial land.
But Yang had his eye only on the "land king." The other properties were nice but not unique. He could always buy them later, perhaps even cheaper in a downturn. His current capital was limited, so he was focused solely on this rare, large-scale plot.
"Mr. Yang, you've got stiff competition," Ho reminded him. "A lot of the big boys are after this one."
"I know," Yang said calmly.
Everyone understood the value of this land.
If it weren't restricted to hotel use, Yang wouldn't be so confident. He couldn't match the financial firepower of British conglomerates like Jardine Matheson, which had a market value of over HK$1.8 billion—Yang's fortune was still a fraction of that.
But historically, this land was actually won by an American firm that introduced the Hilton Hotel brand to Hong Kong.
That meant local British firms, while interested, weren't too aggressive. That gave Yang an opening.
"That's good," Ho Ying-dong nodded. "Then I wish Mr. Yang great success in the bidding."
"Same to you, Mr. Ho," Yang Wendong replied with a smile.
After a brief farewell, Ho left with Mr. Smith. Zheng Zhijie leaned in and said, "Mr. Ho has focused on residential investments these past years. Even when he develops commercial buildings, he usually sells them all. He holds very few properties."
"Probably doesn't trust the colonial government," Yang speculated.
Back in the early 1950s, Ho's activities had already drawn the displeasure of the colonial administration. But at the time, many people were doing the same thing, and the government largely turned a blind eye.
However, as tensions between left and right factions grew in later years, Ho publicly clashed with the colonial government and was subsequently subjected to intense suppression.
Likely anticipating such risks, Ho reduced his investments in immovable assets—a cautious strategy that contrasted with many others who were optimistic about the future.
…
After another ten minutes, the auction officially began.
Yang Wendong remained a spectator for the earlier lots, quietly watching various corporate giants battle for choice plots.
The slump in real estate from earlier in the year had completely vanished. Developers were now fiercely competing for premium locations. Securing one of these plots virtually guaranteed profits in the millions.
"Mr. Yang," Zheng whispered, "the current bidding has already gone well above normal market value. Most of them are factoring in expected appreciation."
"That's how real estate works," Yang said with a nod.
A plot worth 11,000 per square foot today? Forget about buying at that rate. You had to calculate the projected value one year later—maybe 15,000. That 4,000–5,000 gap had to be priced in, or someone else would factor it in and outbid you.
This sort of forward-pricing model only pushed land and home prices higher—and the Hong Kong government was more than happy to see it happen.
…
An hour passed. Nine lots had been auctioned. Five of them set new record highs for their respective neighborhoods.
Once news got out, local land prices would surge again.
Some property tycoons even used these auctions to drive up the value of areas where they held lots of real estate—strategically inflating prices for their own portfolios.
"Next up is the plot at Queen's Road Central No. 2, on Hong Kong Island, measuring 38,000 square feet," the auctioneer announced.
"Due to planning restrictions, this plot must be developed into a hotel. Bidding will be open to Jardine Matheson, Swire, Japan's Sumitomo Realty, the U.S.-based Evergreen Group…
Starting price: HK$28 million. Minimum increments: HK$500,000."
A murmur ran through the room. Everyone had expected the ballpark figure, but hearing it aloud still struck a chord.
Keep in mind—the Hong Kong government's entire land sale revenue last year had been less than HK$100 million.
"HK$28.5 million!" Sumitomo Realty was first to raise their paddle.
"HK$29 million!" Land Development Corp. quickly followed.
…
One by one, the giants entered the fray. Yang Wendong held back, observing.
A few minutes in, the room was buzzing. Faces lit up with anticipation. Everyone knew that if the land price set a new record, it would boost Central property values—and rising Central values would ripple outward, lifting even Kowloon prices.
That was the magic of real estate: it created "shared prosperity."
"HK$36 million," said the U.S.-based Evergreen Group.
The room went quiet.
All eyes turned to Land Dev and Sumitomo. They were the main contenders now. Swire, Wheelock, and a British hotel brand had already dropped out.
After a pause, both firms seemed to be deep in discussion. The auctioneer glanced at them, then rapped his gavel gently: "HK$36 million, first call…"
No response.
"HK$36 million, second call…"
Just then, at a signal from Yang, Zheng Zhijie raised his paddle. "HK$36.5 million."
Whoa—! The room erupted in whispers. Heads turned.
"Yang Wendong? He's bidding on the Land King?"
By now, everyone in Hong Kong real estate knew his name. Hadn't he just bought seven towers on the Island six months ago? And now he was after the crown jewel?
Overseas bidders who didn't recognize him immediately turned to local attendees for clarification.
"What? The Post-it notes and rolling luggage guy? He's from Hong Kong?"
The partners from Evergreen were stunned. They knew how well those two products were selling in the U.S.—they even used them personally. They had never imagined the creator was a Chinese entrepreneur from Hong Kong.
…
"Impressive youth," Ho Ying-dong said softly to his companions. "This young man is going to be a titan in Hong Kong's business world."
Ho had already known Yang was interested in this land, but he hadn't expected him to jump in at HK$36.5 million.
"Yes, even though the land is valuable, not many can withstand this level of financial pressure," one associate noted.
"His factories are extremely profitable," Ho said, smiling. "I've looked into it."
…
Around the room, journalists called out to photographers.
"Focus on Yang Wendong! He might be the star of this auction."
Land king auctions were always a battleground for the biggest names in real estate. Usually, the winning bidder came from the same shortlist of elite companies.
Changxing Real Estate was known within the industry—but it was still miles behind British heavyweights like Land Dev.
And this was Queen's Road Central, the heart of the city. If Changxing won the bid, it would skyrocket in reputation—and the "Post-it King" would become a real estate tycoon.
Yang, now the center of attention, didn't mind at all. He had expected this. He was now wealthy enough to play in Hong Kong's highest financial circles—whether in shipping or real estate.
And attention was just part of the game. To become a true tycoon, fame was a requirement.
"HK$37 million," Evergreen countered.
"HK$37.5 million," Yang's side answered without hesitation.
"HK$38 million," Evergreen again, after a long pause.
"HK$38.5 million," Zheng raised his paddle once more. The room went dead silent.
Evergreen's two American partners looked visibly pale, clearly unsure whether to continue.
The auctioneer gave them a long look, then resumed his professional rhythm.
"HK$38.5 million, first call… second call… third call… Sold!"
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