The Biggest Bull Of Hong Kong Property Is Selling Off Properties5 May, 2011, 22:03. Posted by Zarathustra
Tags: Andrew Look, Big Swinging Dick, Hong Kong, Real Estate
The highly respected, much revered, and most-of-the-time-bullish ex-UBS strategist Andrew Look was back and made some waves. Yesterday he changed his “fair value estimate” of the Hang Seng Index from 30,000 to 28,300 because he thinks yields in the United States is getting higher.
He has also been very bullish on Hong Kong property for quite sometime, citing the same reasons of low interest rates and low supply as the driving forces. At one interview he did with one local Hong Kong magazine “Capital”, he said Hong Kong property prices are not expensive, but super expensive, but because of all those same old reasons (which are almost like a cliché), there is no way that property prices can drop. He added “it is very stupid to sell off your properties now”.
Curiously, yesterday he actually confirmed that he has been selling off his properties over the last 6 months. So we now have one more man joining the team of Li Ka-shing and Ronnie Chan, all sounded very sanguine about the real estate market in Hong Kong, and yet are doing other things that suggest the otherwise.