Property buyers urged to take stock
Investors unable to get a piece of hot forthcoming initial public offerings may want to buy property instead.
Developers once used plasma televisions, flashy furniture, cars and cash to tempt buyers through the door. Now, Cheung Kong Property Development is giving away shares in the sought-after IPOs of China Life Insurance, Great Wall Automobile Holding and Fujian Zijin Mining Industry.
Cheung Kong plans to spend more than $500,000 on the open market buying shares to distribute as part of its promotion for 23 units in six residential developments, according to assistant sales manager Marinda Tai Mei-ling.
'Giving out electrical appliances is getting boring. We want to do something fresh this time,' Ms Tai said.
The properties up for sale are on the market for between $1.79 million and $14.5 million each.
At the high end is a 5,044 square feet home in the University Court development in Kowloon Tong. The buyer of this property will receive 10 lots of shares from each company worth at least $168,400 in total - but potentially more should the stocks make spectacular first-day gains, as expected.
Five lots of China Life shares or three lots of either Great Wall or Fujian Zijin stock will be offered to the buyers of the other 22 units in Banyan Garden, Nob Hill, Hampton Place, Vianni Cove and Metropolis.
However, while stock experts generally advise against timing the markets, potential buyers of the units will need to act quickly: Ms Tai said prices for the homes would rise by about 3 per cent next week.
'Of course, we want to sell all 23 units this weekend,' she said.
The planned price rise is in line with increases from other major developers.
Sino Land recently raised prices for its key residential developments by about 3 per cent and earlier this week, Kerry Properties increased prices at Constellation Cove by 5 per cent.
