Buy home for own use if prices drop more than 10pc, advises Hong Kong tycoon Lui Che-woo
Businessman also bemoans high construction costs for property developers
Hong Kong property and casino tycoon Lui Che-woo has offered his insight into the city’s property market, advising aspiring home buyers to consider buying flats for their own use if property prices drop by over 10 per cent this year.
But the 86-year-old tycoon cautioned against speculation as prospective buyers should exercise prudence and “live within their means”.
READ MORE: Hong Kong entrepreneur Lui Che-woo rises from a tough beginning to run property, hotel and gambling businesses
“If property prices fall by over 10 per cent this year, you should buy it,” he said on Wednesday at the launch of his biography.
The chairman of K. Wah Group and Galaxy Entertainment offered the advice as property prices started to show signs of weakening amid an initial US rate rise, expectations of greater supply and negative news on the mainland economy.
Lui believed, however, that there would not be further drops because of the city’s high construction costs.
“Construction costs are expensive in Hong Kong because of high wages since we are not allowed to import foreign labour,” he pointed out.
