Chapter 656: Affordable Housing
The ups and downs of real estate and stock markets have been the focus of media attention for some time. However, Hong Kong is not only about real estate and stock markets, but also has other things that have a great impact.
For example, in June, MacLehose publicly announced that he would implement the "Home Ownership Scheme", including building a sufficient number of public housing in Hong Kong in the next ten years, so that a large number of people who cannot afford to buy a house can have a place to live;
This incident did have some impact on the real estate market, and many people began to wait and see. However, with the launch of successive plans by the Hong Kong government, the market no longer cared much.
It seems that the government has also followed some of Yang Wendong's suggestions. The first batch of affordable housing will only be provided to families with disabilities, families with seriously ill patients or families with special difficulties. These extremely poor families themselves are not the target customers of the real estate market. Therefore, the Hong Kong government's provision of houses for these people will naturally not affect the market.
In addition, the Hong Kong government announced that the possible location for building public housing is located deep in the New Territories, which is also a pond and jungle. There are no supporting facilities around. The Hong Kong government only promised to build a road out, but everyone knows that transportation in such a place is a big problem for the truly poor, because if they want to work and live in such a place, the commuting cost will be very high;
But no matter what, this is also a welfare benefit introduced by the Hong Kong government. No matter how bad the living environment is, it is better than nothing. Many people who have no place to live or cannot afford to rent a house are not qualified to be picky.
Half a month after the project was made public, there seemed to be no objection in the market, so the Hong Kong government started bidding, seeking professional construction companies to design special apartment types. The successful bidder would naturally be responsible for the entire construction project.
Some construction companies were also quite interested, but after seeing the budget given by the Hong Kong government, they immediately gave up. You know, the real estate market was booming at that time, and many shopping malls, office buildings, residential buildings and even road infrastructure required a large amount of manpower. They could make huge profits from these projects. On the contrary, the profit margin of this project of the Hong Kong government was pitifully low. If the price of construction materials fluctuated again, it was even possible to make a loss. In this case, they were naturally unwilling to participate.
However, when Yang Wendong saw the Hong Kong government's bidding conditions, he called Zheng Zhijie and Ning Zhiyuan, a Chinese who was in charge of Kinmen construction.
"Can you please calculate the profit margin of this project?" Yang Wendong asked.
Ning Zhiyuan replied: "Mr. Yang, based on the current market price of materials, the profit margin of the entire project is only about 3%, and this does not take into account the design cost. If the design is simple, the cost is not high, but if the Hong Kong government is not satisfied with our design, the investment will not be small."
Zheng Zhijie followed up and said, “Mr. Yang, the 3% profit margin is actually just a theory. If there are some changes, it is very likely to lose money. This is why many construction companies are unwilling to undertake it, because other projects currently have a profit of at least a dozen points;
But the Hong Kong government refused to give in, insisting that this was a public infrastructure project, and although the profit margin was low, the project was large in scale and lasted a long time, so the budget was very tight.”
"What the Hong Kong government said is right. This project does take a long time. According to MacLehose's plan, it will continue as long as he is in office." Yang Wendong said with a faint smile.
Although the Home Ownership Scheme has not been successful in Hong Kong's history, it is only said that it has not been completely successful. Over the years, some houses have been built, but they are far from meeting market demand. One of the reasons for this is that the application conditions are too broad, resulting in too many people competing.
In fact, this kind of core affordable housing is unlikely to cover many groups anywhere, and should only target very poor special groups. Only in this way can it be successful, because it does not infringe on the interests of capital;
Although this is a form of government surrender to capital, the reality is that failure to respect reality will only lead to greater failure.
Zheng Zhijie saw what his boss meant and asked, "Mr. Yang wants us to take over this project?"
Yang Wendong nodded and said, "Yes, I want Jinmen Construction to participate. First, this project is indeed a long-term project. Although it won't make much money, it can also drive a lot of industrial employment.
Secondly, I also hope to use the strong design capabilities of Kinmen Architecture to provide ordinary poor people with a relatively better living environment at the lowest cost and with the smallest area. "
Actually, there is one thing I haven't mentioned yet, which is that it seems that this project does not make much profit now, but once the economic crisis breaks out and the real estate market collapses, both labor costs and prices of various building materials will inevitably plummet. The reference for the Hong Kong government to calculate costs is still the current time point. At this time, when the real estate market is booming, various procurement costs will inevitably rise;
The coming real estate crisis will last at least one or two years. This way, not only will the profits be higher, but it will also provide stable employment for the workers of Kinmen Construction. Otherwise, there will be too many unemployed people in its own construction companies, which is not good. Either it will lose money or it will lay off employees.
Another last point is that as one of the top two construction companies in Hong Kong, Golden Gate Construction has strong design capabilities. Even in the design of small apartments, professional Bei Jinming may not be able to compete. This is also caused by the special environment of Hong Kong. Seeing that the boss is not only concerned with profits, Zheng Zhijie naturally complied and said, "Okay, Mr. Yang, I will immediately negotiate the relevant matters with the Hong Kong government."
"Okay." Yang Wendong nodded, looked at Ning Zhiyuan and said, "Kinmen Construction should pay more attention to the design of affordable housing. Don't worry about the cost. To the greatest extent possible, it should make the family live better.
But there is one thing to note: it can’t be too good. If it is too good, I think rich or powerful people will try to seize these houses. We need to find a balance. For example, the bathroom or shower should be shared, which is actually good for the residents.”
In the past, an expert on the mainland Internet once suggested that public low-rent housing should not have independent toilets, and was cyberbullied for this; but later, netizens realized that what he said was true;
The mainland is different from Hong Kong. Although the land value in cities like Beijing, Shanghai and Guangzhou is also very high and in short supply, there is still enough land in other places. There is always enough space to build affordable housing, and the area will not be too small. If there is an independent bathroom, it is very similar to a single apartment, and there will definitely be people who drive BMWs to apply for it. And this is indeed the case.
Only sufficient inconvenience can guarantee the interests of the truly poor.
Ning Zhiyuan was also a smart man. He understood what his boss meant and said, "Okay, Mr. Yang, I will set up some things that will make the tenants feel inconvenient. As long as this house is difficult to rent out, it will be guaranteed that some people will not touch it."
"Smart." Yang Wendong praised with a smile.
Those who drive Land Rover, Mercedes-Benz and BMW, although they use their connections to compete with the poor for public housing or low-rent housing, they will definitely not live in the houses themselves. Instead, they will rent them out for profit. As long as they cannot rent them out, they will naturally give up.
Ning Zhiyuan added: "Then I will arrange for the design department to design the floors and building structure diagrams according to the requirements of the Hong Kong government today. I will inform you when the results come out."
"Okay, I want to take a look too." Yang Wendong nodded.
Yang Wendong is willing to do this as long as it can allow people to live with a little more dignity at the same cost, and it will also benefit him a little. Although the benefit may not seem much, it is enough as long as he does not lose money.
Zheng Zhijie added: "Mr. Yang, there is actually another problem. The transportation in the locations selected by the Hong Kong government is very poor. Although the Hong Kong government has promised to build roads, it is definitely inconvenient to travel;
My idea is that it would be better to let Changxing Industry or several other factories dispatch some of them. Anyway, given the current economic situation, it would be a waste to open more factories in the locations of many existing factories."
In its early years, Changxing Group started out by relying on factories. A large number of factories were located in towns such as Tsim Sha Tsui and Kwun Tong. Ten years ago, the economic core of Hong Kong was still in Hong Kong Island, and these towns could only be regarded as rural areas;
However, with the economic development and population increase over the past ten years, Hong Kong Island has reached its development limit. Some towns on the Kowloon Peninsula have become key economic development targets. Even many of Hong Kong's real estate conglomerates are developing in these places.
Just like those century-old British companies have a large amount of high-quality land in Hong Kong Island, Changxing Group also has a lot of land around many important towns in the Kowloon Peninsula. With the outward expansion of urbanization, although these places are not as valuable as Central, they are also extremely valuable. It would be a waste to use them to open factories or warehouses, and labor costs are also getting higher and higher, so it is time to consider relocating.
"Okay, you can discuss this matter with Wei Zetao or Zhou Haoran and arrange some small business appropriately." Yang Wendong naturally agreed very much: "The Hong Kong government has also gathered very poor people and even disabled people together. We provide jobs nearby, which can be regarded as a great good deed."
In the past, many companies in the mainland recruited disabled people. Although it was also because of special subsidies, it was a good thing no matter what the reason was, especially the White Elephant instant noodles brand that the post-80s generation often ate when they were young. The number of disabled people recruited by this company far exceeded the normal needs, which can be regarded as the boss's kindness.
Hong Kong does not have such a policy, but Yang Wendong will also do something similar by the way.
Of course, it is definitely difficult to recruit people with severe disabilities who are completely paralyzed. Generally, we can only recruit people who are slightly disabled but can still do something. People with serious disabilities can only rely on charity.
Zheng Zhijie agreed: "Okay, this will also be beneficial to the positive image of our company."
PS: Please give me a monthly ticket
(End of this chapter)
The ups and downs of real estate and stock markets have been the focus of media attention for some time. However, Hong Kong is not only about real estate and stock markets, but also has other things that have a great impact.
For example, in June, MacLehose publicly announced that he would implement the "Home Ownership Scheme", including building a sufficient number of public housing in Hong Kong in the next ten years, so that a large number of people who cannot afford to buy a house can have a place to live;
This incident did have some impact on the real estate market, and many people began to wait and see. However, with the launch of successive plans by the Hong Kong government, the market no longer cared much.
It seems that the government has also followed some of Yang Wendong's suggestions. The first batch of affordable housing will only be provided to families with disabilities, families with seriously ill patients or families with special difficulties. These extremely poor families themselves are not the target customers of the real estate market. Therefore, the Hong Kong government's provision of houses for these people will naturally not affect the market.
In addition, the Hong Kong government announced that the possible location for building public housing is located deep in the New Territories, which is also a pond and jungle. There are no supporting facilities around. The Hong Kong government only promised to build a road out, but everyone knows that transportation in such a place is a big problem for the truly poor, because if they want to work and live in such a place, the commuting cost will be very high;
But no matter what, this is also a welfare benefit introduced by the Hong Kong government. No matter how bad the living environment is, it is better than nothing. Many people who have no place to live or cannot afford to rent a house are not qualified to be picky.
Half a month after the project was made public, there seemed to be no objection in the market, so the Hong Kong government started bidding, seeking professional construction companies to design special apartment types. The successful bidder would naturally be responsible for the entire construction project.
Some construction companies were also quite interested, but after seeing the budget given by the Hong Kong government, they immediately gave up. You know, the real estate market was booming at that time, and many shopping malls, office buildings, residential buildings and even road infrastructure required a large amount of manpower. They could make huge profits from these projects. On the contrary, the profit margin of this project of the Hong Kong government was pitifully low. If the price of construction materials fluctuated again, it was even possible to make a loss. In this case, they were naturally unwilling to participate.
However, when Yang Wendong saw the Hong Kong government's bidding conditions, he called Zheng Zhijie and Ning Zhiyuan, a Chinese who was in charge of Kinmen construction.
"Can you please calculate the profit margin of this project?" Yang Wendong asked.
Ning Zhiyuan replied: "Mr. Yang, based on the current market price of materials, the profit margin of the entire project is only about 3%, and this does not take into account the design cost. If the design is simple, the cost is not high, but if the Hong Kong government is not satisfied with our design, the investment will not be small."
Zheng Zhijie followed up and said, “Mr. Yang, the 3% profit margin is actually just a theory. If there are some changes, it is very likely to lose money. This is why many construction companies are unwilling to undertake it, because other projects currently have a profit of at least a dozen points;
But the Hong Kong government refused to give in, insisting that this was a public infrastructure project, and although the profit margin was low, the project was large in scale and lasted a long time, so the budget was very tight.”
"What the Hong Kong government said is right. This project does take a long time. According to MacLehose's plan, it will continue as long as he is in office." Yang Wendong said with a faint smile.
Although the Home Ownership Scheme has not been successful in Hong Kong's history, it is only said that it has not been completely successful. Over the years, some houses have been built, but they are far from meeting market demand. One of the reasons for this is that the application conditions are too broad, resulting in too many people competing.
In fact, this kind of core affordable housing is unlikely to cover many groups anywhere, and should only target very poor special groups. Only in this way can it be successful, because it does not infringe on the interests of capital;
Although this is a form of government surrender to capital, the reality is that failure to respect reality will only lead to greater failure.
Zheng Zhijie saw what his boss meant and asked, "Mr. Yang wants us to take over this project?"
Yang Wendong nodded and said, "Yes, I want Jinmen Construction to participate. First, this project is indeed a long-term project. Although it won't make much money, it can also drive a lot of industrial employment.
Secondly, I also hope to use the strong design capabilities of Kinmen Architecture to provide ordinary poor people with a relatively better living environment at the lowest cost and with the smallest area. "
Actually, there is one thing I haven't mentioned yet, which is that it seems that this project does not make much profit now, but once the economic crisis breaks out and the real estate market collapses, both labor costs and prices of various building materials will inevitably plummet. The reference for the Hong Kong government to calculate costs is still the current time point. At this time, when the real estate market is booming, various procurement costs will inevitably rise;
The coming real estate crisis will last at least one or two years. This way, not only will the profits be higher, but it will also provide stable employment for the workers of Kinmen Construction. Otherwise, there will be too many unemployed people in its own construction companies, which is not good. Either it will lose money or it will lay off employees.
Another last point is that as one of the top two construction companies in Hong Kong, Golden Gate Construction has strong design capabilities. Even in the design of small apartments, professional Bei Jinming may not be able to compete. This is also caused by the special environment of Hong Kong. Seeing that the boss is not only concerned with profits, Zheng Zhijie naturally complied and said, "Okay, Mr. Yang, I will immediately negotiate the relevant matters with the Hong Kong government."
"Okay." Yang Wendong nodded, looked at Ning Zhiyuan and said, "Kinmen Construction should pay more attention to the design of affordable housing. Don't worry about the cost. To the greatest extent possible, it should make the family live better.
But there is one thing to note: it can’t be too good. If it is too good, I think rich or powerful people will try to seize these houses. We need to find a balance. For example, the bathroom or shower should be shared, which is actually good for the residents.”
In the past, an expert on the mainland Internet once suggested that public low-rent housing should not have independent toilets, and was cyberbullied for this; but later, netizens realized that what he said was true;
The mainland is different from Hong Kong. Although the land value in cities like Beijing, Shanghai and Guangzhou is also very high and in short supply, there is still enough land in other places. There is always enough space to build affordable housing, and the area will not be too small. If there is an independent bathroom, it is very similar to a single apartment, and there will definitely be people who drive BMWs to apply for it. And this is indeed the case.
Only sufficient inconvenience can guarantee the interests of the truly poor.
Ning Zhiyuan was also a smart man. He understood what his boss meant and said, "Okay, Mr. Yang, I will set up some things that will make the tenants feel inconvenient. As long as this house is difficult to rent out, it will be guaranteed that some people will not touch it."
"Smart." Yang Wendong praised with a smile.
Those who drive Land Rover, Mercedes-Benz and BMW, although they use their connections to compete with the poor for public housing or low-rent housing, they will definitely not live in the houses themselves. Instead, they will rent them out for profit. As long as they cannot rent them out, they will naturally give up.
Ning Zhiyuan added: "Then I will arrange for the design department to design the floors and building structure diagrams according to the requirements of the Hong Kong government today. I will inform you when the results come out."
"Okay, I want to take a look too." Yang Wendong nodded.
Yang Wendong is willing to do this as long as it can allow people to live with a little more dignity at the same cost, and it will also benefit him a little. Although the benefit may not seem much, it is enough as long as he does not lose money.
Zheng Zhijie added: "Mr. Yang, there is actually another problem. The transportation in the locations selected by the Hong Kong government is very poor. Although the Hong Kong government has promised to build roads, it is definitely inconvenient to travel;
My idea is that it would be better to let Changxing Industry or several other factories dispatch some of them. Anyway, given the current economic situation, it would be a waste to open more factories in the locations of many existing factories."
In its early years, Changxing Group started out by relying on factories. A large number of factories were located in towns such as Tsim Sha Tsui and Kwun Tong. Ten years ago, the economic core of Hong Kong was still in Hong Kong Island, and these towns could only be regarded as rural areas;
However, with the economic development and population increase over the past ten years, Hong Kong Island has reached its development limit. Some towns on the Kowloon Peninsula have become key economic development targets. Even many of Hong Kong's real estate conglomerates are developing in these places.
Just like those century-old British companies have a large amount of high-quality land in Hong Kong Island, Changxing Group also has a lot of land around many important towns in the Kowloon Peninsula. With the outward expansion of urbanization, although these places are not as valuable as Central, they are also extremely valuable. It would be a waste to use them to open factories or warehouses, and labor costs are also getting higher and higher, so it is time to consider relocating.
"Okay, you can discuss this matter with Wei Zetao or Zhou Haoran and arrange some small business appropriately." Yang Wendong naturally agreed very much: "The Hong Kong government has also gathered very poor people and even disabled people together. We provide jobs nearby, which can be regarded as a great good deed."
In the past, many companies in the mainland recruited disabled people. Although it was also because of special subsidies, it was a good thing no matter what the reason was, especially the White Elephant instant noodles brand that the post-80s generation often ate when they were young. The number of disabled people recruited by this company far exceeded the normal needs, which can be regarded as the boss's kindness.
Hong Kong does not have such a policy, but Yang Wendong will also do something similar by the way.
Of course, it is definitely difficult to recruit people with severe disabilities who are completely paralyzed. Generally, we can only recruit people who are slightly disabled but can still do something. People with serious disabilities can only rely on charity.
Zheng Zhijie agreed: "Okay, this will also be beneficial to the positive image of our company."
PS: Please give me a monthly ticket
(End of this chapter)
