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On Newsstands: WOW Autumn 2022
Innovation and fair value in watchmaking come in for scrutiny in the latest issue of WOW. Informed by the most recent watch fairs, the editorial team investigates which of the 2022 novelties features the most interesting watchmaking technology, and which watches and brands have gotten it right over the last decade.
Having said that, the act of creating new things is often about reinvention, with some additions and omissions. Now that our long-running series on escapements has come to a close, this seemed like the best moment to explore the outer limits of traditional watchmaking. Watches and Wonders Geneva had presented a showcase of innovation called LAB at the fair; the pandemic had forced many brands to lean into e-commerce; and there is plenty of new thinking around the idea of timepieces.
While you might think it is simply too much for one issue, you could also argue that there is no real innovation to get into. If nothing else, we hope this issue disabuses you of the latter notion. Innovation is, of course, relative, and it is quite clear that watch brands want to make better watches, even if they do not go about trying to beat the accuracy of quartz, although Guy Bove did remind us that TAG Heuer is far from quiet on this front. In any case, innovation means a variety of different things, all of which purport to be about making better watches, just not more accurate ones. It is all about the cool factor, and these days, that includes the Metaverse and Web3.
While our cover star, the Tissot PRX Chronograph, is hardly the product of watchmaking innovation, it is definitely a cool watch. And part of a cool collection too. We were lucky enough to get Tissot CEO Sylvain Dolla to weigh in on the collection this issue, just as he did last time around. He is resolute in asserting that truly desirable watches cannot be created by marketing committees, something we were surprised to hear echoed over at Parmigiani Fleurier. We spoke with the brand’s CEO Guido Terreni (also making a return appearance in our pages) at his ridiculously well-appointed office in Fleurier. This sort of better watch, it seems, can only be made by people with great intuition.
“Timepieces are the very objects that connect us with the past and the future, while seeming to be only concerned with the present,” said WOW Editor-in-Chief Ashok Soman. “The mechanical wristwatch is today transforming itself into something we may not recognise; at the same time, watchmakers have yet to deliver on the full potential of quartz.”
WOW will return with much more to say on innovation in watchmaking, with the Autumn issue’s more than 50 pages not enough to cover the entire subject.
For more watch reads, click here.
The post On Newsstands: WOW Autumn 2022 appeared first on LUXUO.
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Jim Thompson Debuts A New Heritage and Creative Quarter
Thailand’s iconic luxury lifestyle brand Jim Thompson is set to expand its universe with the unveiling of Jim Thompson Heritage and Creative Quarter. Situated alongside the renowned Jim Thompson House Museum in the heart of central Bangkok are several new additions to the brand’s universe: a “Museum About the Man”, Home Furnishings Exhibition, café and the Iconic Store.
Many of us would know Jim Thompson because of his sudden disappearance that till now remains an unsolved mystery. But equally intriguing is the life that he had led and the legacy he left behind. The American businessman is known in Thailand as the “King of Silk” for his relentless efforts in reviving the Thai silk industry, which during the 1950s and 1960s is a sunset industry. After a successful showcase in New York, the demand for Thai silk grew exponentially and soon he was able to open his first retail shop on Surwong Road in Bangkok.
After a rewarding business in Thai silk, the astute businessman’s ambition grew and he ventured into other sectors to promote the beauty of Thai culture, traditions and the spirit of innovation inherent in the people. All of the happenings of the visionary man are encapsulated in the ongoing exhibitions in the residence-cum-museum of Jim Thompson.
Despite Jim Thompson’s unfortunate disappearance, his grand plans for the brand continues on with the current leadership. Speaking more about the opening of Jim Thompson Heritage and Creative Quarter, CEO Frank Cancelloni said: “We are excited about this new chapter. This is not just any lifestyle brand; it was founded by an iconic man who revived the Thai silk industry. The project will be 100 per cent completed by April 2023 with the opening of a restaurant, a bar and a multifunctional hall, all reflecting the spirit of Jim Thompson.”
For visitors, local and international, they will be able to immerse themselves in the rich history and beauteous architecture of Jim Thompson’s former residence. Aside from the highlight which is the “Museum About the Man”, the Iconic Store is a place to pay a visit as it offers over 6,000 products and exciting collaborative projects from menswear to womenswear and other accessories; these goods are exclusive to the store in Bangkok.
Should you have a chance to travel to Thailand, be sure to bookmark and drop by the Jim Thompson Heritage and Creative Quarter.
For more lifestyle reads, click here.
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Waterfront Invigoration — Hong Kong Property Outlook 2022
Living by Hong Kong’s waterfront commands prestige. Image: HK Property Report.
Hong Kong’s waterfront living will witness an injection of exciting activities of art and retail activities despite the pandemic.
With the fifth outbreak of the pandemic, the Hong Kong residential market activity undoubtedly slowed down abruptly in primary and secondary residential markets. In the month of January 2022, around 4,275 units transacted for a sum of HK$43.4 billion (approx. US$5.54 billion), dropping 16.9 per cent month-on-month (MoM) in the primary market and 10.5 per cent MoM in the secondary market. Notably, primary sales slipped 28.6 per cent MoM to 1,081 units because of a limited number of newly launched projects before the busy Chinese New Year.
Knight Frank Hong Kong Property Report: In the mass market, both property owners and potential buyers took a cautious stance by putting sales and purchase plans on hold. This led to a sharp fall in the number of enquiries and unit views. In the buyers’ market, a few sellers were desperate and substantially cut prices to sell their properties, resulting in some isolated unexpectedly low-price transactions in blue-chip estates.
Despite this, unique and exclusive luxury properties remained sought-after by well-heeled buyers. Notable transactions in January include a 3,548-sq-ft-unit at 8 Deep Water Bay Drive in Deep Water Bay where a staggering HK$393.2 million (approx. US$50.2 million) was transacted. Meanwhile, a unit at University Heights in Mid-Levels West, sold for HK$258 million (approx. UD 33 million) or HK$84,358 (approx. US$10,774 per sq ft).
On the other hand, a notable land sale of a premium residential site snagged an eager response from several developers. In fact, SEA Holdings clinched the luxury residential site in Repulse Bay for a whopping HK$1.19 billion (approx. US$152 million), or an accommodation value of about HK$62,352 per sq ft (approx. US$7,964). This translates to the highest-ever land sold through government tender, breaking the record of HK$50,101 (approx. US$6,399) set by a consortium led by Wharf Holdings for a site on The Peak in February last year. While this signals positive bell weather for developers’ confidence in their outlook for Hong Kong’s luxury residential market, the worsening fifth wave of the pandemic and tighter social distancing restrictions might put a damper on launch plans for new projects. The overall residential market sentiment and activity will be mostly inactive in the coming months.
Jones Lang Laselle Hong Kong Property Report: While transaction volume dipped, the mass residential capital values grew by 0.5 per cent MoM in December after a 0.1 per cent rise in the previous month where housing price growth in the New Territories led the charge. Buying sentiments were crimped during the holiday month as evidenced in lack-lustre sales such as 80 per cent of the 325 units put up for sale at The YOHO Hub perched on Yuen Long Station, developed by Sun Hung Kai Properties, were sold on the day of the project launch. However, The Aperture in Kowloon Bay, developed by Hang Lung, sold only 52 per cent of the 230 units introduced during its two-week launch. However, a luxury landed house at 13 Stafford Road in Kowloon Tong exchanged hands for HK$190 million (approx. US$24.2 million) or HK$49,947 per sq ft (approx. US$6,397).
Waterfront Living
Much Like Living On The Italian Riviera – Il Picco, Discover Bay, Hong Kong. Image: Il Picco Hong Kong.
Here, we look at two distinct waterfront properties in Hong Kong and how each one boats unique features and amenities to engage the senses. Hong Kong is always known as a city abuzz with plenty of activities in commerce and retail. The waterfront precinct at Discover Bay, the lure of nature and its pocket of serenity will be a haven for future homeowners seeking tranquillity from the hubbub of Hong Kong’s frenetic city life. Accessing there can be via taxi; in fact, by ferry to Central, it’s less than 30 minutes.
Discovery Bay beckons one with enviable sea views and lush greenery. You can take in coastal views as the precinct is located on Lantau Island and covers 650 hectares of which two-thirds provide verdant terrains. For new families seeking a residential haven, a quality international community exists through two international schools, Discovery College (by English Schools Foundation) and Discovery Bay International School.
Moreover, there is also SKH Wei Lun Primary School in Discovery Bay which belongs to the Central and Western District Secondary School network. Nature-loving couples and families can pursue land and sea-based activities at Lantau Yacht Club, Discovery Bay Ice Rink, Club Siena, Discovery Bay Recreation Club, Auberge Discovery Bay Hong Kong, D’Deck, or frolic along Tai Pak Beach where 400 metres of sandy shores await beachgoers.
Il Picco is perched on a hill and is the latest residential property at Discovery Bay. Designed with a resort aesthetic, the low-density residential project will offer units with a detached garden. With its hilly vantage point, one can take in the mountainous views where a reservoir flanks the project. Undoubtedly, sea views also take centrestage at this prestigious residential project. Il Picco offers 21 two-storey detached garden houses for future homeowners.
These home unit sizes range from 2,023 or 2,171 sq ft of space; you can opt for either the three-bedroom or four-bedroom configurations. Weekends can be spent in your private garden ranging from 1,963 to 4,124 sq ft of land. Here, you can also indulge in special family moments on the spacious private roof to have a meal or gaze into nature-rich views with loved ones. There will be private swimming pools for certain homes and even a massive alfresco space. For outdoor pursuits, the Discovery Bay Golf Club with three world-class golf courses totalling 27 holes is at your whim.
Indoor-loving residents can appreciate and enjoy the generous 8.2m-wide living and dining room with a 4.3m ceiling height. This is perfect for “me time” or other family-based activities enjoyed in comfort and privacy. For those with a proclivity for entertaining at home, the large sliding glass doors of the living and dining room will let you out to the private garden. Here, you can enjoy the well-ventilated space where sunlight streams in.
Each unit is equipped with a stylish kitchen and open pantry, complemented by high-tech integrated household devices to cook, and prep food. Hey, did we mention you can own a golf cart to enjoy the European lifestyle, too? Il Picco is bent on giving couples and families spacious and sophisticated living areas to enjoy their lives as their take in the sea views and verdant vistas.
For more information, please visit: www.ilpicco.com.hk
Artistic Injection — Victoria Dockside
Plenty of waterfront activities to enjoy. Image: James Corner Field Operations.
Known as a cultural mastermind, Adrian Cheng is creating waves in his latest mixed-use development — Victoria Dockside in Tsim Sha Tsui. The US$2.6 billion, family-run business will offer 3 million sq ft of art and design installations right in the heart of the Kowloon promenade. This artistic invigoration is all set to transform Hong Kong’s iconic skyline through chic space where design and art thrive. This is touted to be Hong Kong’s most exciting new neighbourhood.
Victoria Dockside was formerly known as Holt’s Wharf back in 1910 where it was a bustling freight and logistics hub. The plot of land was acquired by Adrian Cheng’s grandfather, Cheng Yu-tung, back in the 1970s to build New World Centre. Adrian is recognised as new blood and he’s all set to rebuild it into a global art and design district with a strong focus on culture and heritage.
Social spaces at Victoria Dockside Hong Kong. Image: James Corner Field Operations
Victoria Dockside is currently an arts and design avenue, and also a business hub interspersed with pockets of greenery. The masterplan for this gargantuan project was conceptualised by acclaimed architectural firm Kohn Pederson Fox (KPF), and landscape architect James Corner Field Operations (JCFO). These two experts collaborated with Adrian Cheng and over 100 designers and consultants worldwide.
Cheng’s K11 Artus which opened in Q3 2019, added a cool factor to this district through its innovative art and design elements, luxury residence options and engaging public spaces, all set in a creative scene. While K11 Atelier focuses on future-forward office concepts blended with art, culture, and innovation, the K11 Musea creates a destination for ultra-high-end experiential retail, art, culture, and dining experiences.
K11 Artus’ “Artisanal Home” is Asia’s first luxury residence built to preserve and promote fast-disappearing artisanal skills. K11 Artus now offers 287 units where residents can enjoy full-service luxury residences in Hong Kong by melding rich cultural programmes bent on inspiring and discovering individuals to have dialogues in curated public spaces. The development also boasts landscaping work done by Bangkok’s P Landscape (PLA), while the posh penthouses were done up by Hong Kong’s Joyce Wang, UK’s Fiona Barratt, and New York’s NEMA workshop.
Retail spaces at Victoria Dockside Hong Kong. Image: James Corner Field Operations.
K11 Artus is decked out in traditional Chinese artisanal objects carefully chosen by Cheng and his knowledgeable team. These include wooden furniture handcrafted using baibaoqian (百寶嵌) techniques where the ancient craft of inlaying engraved work with precious stones and ceramics with guancai (i.e. 棺材, hand-painted porcelain work). K11 Artus also collaborated with K11 Craft and Build Foundation — the development’s charity arm which focuses on preserving and conserving Chinese crafts harking back to the Ming and Qing dynasties. These prestigious objects will be made available to purchase by K11 Artus residents, with proceed supporting artists and their time-honoured crafts.
By embellishing residences with these artisanal creations, K11 Artus injects a design and artistic narrative for individuals to imbibe this cultural discover and enjoy intellectual dialogues. The K11 Artus community will offer these residences a rich history of salon culture through in-house salon programmes where leading cultural personas such as artists, playwrights, designers, explorers, and scholars will share their insights.
Rendering of Victoria Dockside. Image: James Corner Field Operations.
Residents returning to their suites will enjoy and discover 70 different layouts where cultural and heritage-rich discoveries abound. Each suite will offer plenty of handcrafted objects, mesmerising tribal prints, stone carvings and much more for residents to appreciate. K11 Artus amalgamates all the elements of city life — comfort, urban dynamism, artistic insights, and innovative and engaging public spaces to celebrate creativity in today’s modern context.
For more information, please visit: www.artus.com.hk
For more property reads, click here.
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Wednesday, September 28, 2022
Yeo Chee Kiong and Isabella Teng’s Art Exhibition Ask Questions That Do Not Need Definite Answers
Nowadays, questions are seldom truly asked with intention. More and more of the younger generations are being brought up thinking that every question has a ready answer, when the essence of asking questions is about being open to not just one, but multiple possibilities.
There is no true sense of finality in art, as there is no right or wrong in personal expression, and that’s what esteemed sculptor Yeo Chee Kiong and young Singaporean artist Isabella Teng explore in their new exhibition, Question.
Presenting pieces that contemplate the dualities of heaven and earth, spirit and body, nature and science, and well as aesthetics and philosophy, the artists challenge and subvert our natural ways of looking at the world, inviting us to think beyond our comfort zones through a masterful finessing of their art forms.
The first of this artistic pairing, alumnus of the Glasgow School of Art and the Nanyang Academy of Fine Arts, Yeo Chee Kiong, uses playful and unexpected juxtapositions to make sculptures and installations that study the language of and spatial relationship between object, space and authorship. He destabilises the familiar notions of spatial proportions and perspectives to examine the complex human conditions that construct the surreal world.
In Question, he presents a series of beautiful contradictions. Each work a passionate inquiry of why nature is the way it is — revealing his unmistakable love for perfect imperfections. Characteristic steel bubbles as seen in Pedicure (2013) and The wind and wings (2010) explore the human being’s primal desire for the truth within the absurd world of delusion, while Silent Rain, which manifests as green and white clouds raining strings of wool, and lucid beauty of instability and adventuring on a road less travelled.
The other half of Question is helmed by Isabella Teng, whose imaginative worlds transport viewers into magical realms drawn up by her deft hand. She is obsessed with clean, simple yet powerful line and creates two-dimensional drawings, paintings, drawings in space, three-dimensional anamorphic installations, conceptual installations — works grounded in the exploration of the line. While her definition of “line” has branched out from drawing into text, writing, and space, the love affair remains the same: an engagement with the unanswerable mystery of the line.
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Suggestive and engaging, her collection of works tracks her growth as a person through time in a heartfelt and thoughtful manner. Of the two new works made for this event, Into The Valley (2022) revisits a time of isolation and extreme introspection from 2015 to 2016, after feeling lost and distressed; if you can’t go up the mountain, why don’t you go down into the valley? That was how this enigmatic piece came to be. To Be Free (2022), the other new work, ponders a more carefree time by illustrating a tree that has roots growing upwards, and the ground is peppered with foliage.
Other works like the adorable “Where Did The Gravity Go?” Series (2009-2013), A Resting Place (a set of four works), and Map (2014), a formative piece that shows the influence of Yayoi Kusama in her work and the cover work of this exhibition, all show depth and emotional clarity as she traverses different emotional planes and phases in her life, bringing viewers into her evolving world.
If anything, this show proves that there are always answers to be found, instead of a singular answer or truth that all humans yearn to reach in their lifetime. After all, the shortest distance between two points is not always a straight line.
This exhibition is set up by Olal’Art, an art consulting company that manages art projects, curates exhibitions, and organises art events. They mainly focus on Chinese and French artists who do abstract art, art brut, and pop art. Olal’Art also gives consultation to anyone, families or private businesses, for suitable art pieces to decorate their homes, offices, or event spaces.
Additionally, Olal’Art provides workshops and guided tours to connect with the public about the art world and spread awareness of the artists’ thoughts through their artworks. Always exploring new partnerships and collaborations, Olal’Art welcomes all who wish to pursue more artistic and cultural projects to get in touch with them.
For more art reads, click here.
The post Yeo Chee Kiong and Isabella Teng’s Art Exhibition Ask Questions That Do Not Need Definite Answers appeared first on LUXUO.
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Singapore Watch Fair 2022: An Occasion To Celebrate Time
Happening for the first time, Singapore Watch Fair will make its debut in the city’s prime shopping district at Ngee Ann City Civic Plaza along Orchard Road. Affectionately known as “The Tent”, the event is considered Asia’s most prestigious festival celebrating the art of horology. Formerly part of the JeweLuxe Festival, Singapore Watch Fair is now independent and will welcome watch enthusiasts from the 26 to 30 October 2022.
According to its press release, this watch-centric festival is dedicated to “[perpetuating] the appreciation and collecting culture of mechanical timepieces in Singapore and around the region and will be the venue where relationships between collectors and watchmakers are forged.” The Tent will host more than 20 independent watch brands like L’epee 1839, Bianchet, Furlan Marri and many more. Visitors who wish to hone their knowledge of horology can attend the slew of experiential activities, including viewing vintage pieces and a panel discussion by industry experts like Alexandre Bigler, head of Asia-Pacific for Christie’s Watches and Marc Andre of WatchesTV. They will share their opinions on key topics and the future of watchmaking and watch collecting.
“Watch imports in Singapore have been steadily increasing to meet the growing demand here. With a defined retail structure, stable business environment and accessibility to the rest of Asia, Singapore is the perfect destination for watchmakers and watch enthusiasts to present their showcase, exchange information, and expand their network,” says Nelson Lee and Ali Nael, founders of the Singapore Watch Fair.
“This year, we have elevated the Singapore Watch Fair with the aim to be the ultimate destination for horologists in Singapore and around the region. Attendees can look forward to an exciting lineup of activities including a one-of-a-kind showcase to engage consumers and instil a deeper appreciation of the art of watchmaking as well as panel discussions with distinguished individuals and foundations such as Fondation de la Haute Horlogerie. Ultimately, our goal is to be Asia’s leading watch trade show and a destination for horologists everywhere.”
One of the highlights will be the amalgamation of horology and the NFT. Luxury standalone watch retailer Culture Watches and world-renowned watchmaker Konstantin Chaykin has created an exclusive Bored Ape Yacht Club timepiece that will be launched at the Singapore Watch Fair. The event will also be a congregation point for the crypto rich, and they can join in the live NFT minting process and closed-door shopping, among other activities. Closer to home, the five-day affair will set the stage for Singapore-based Atelier Holgur to showcase its creations.
Also launching at the Singapore Watch Fair is FutureGrail, which is the city-state’s inaugural bespoke private storage, museum and Web3 service provider. In conjunction with the event, it will introduce a watch and vault service for collectors to securely store their prized watch collection in its state-of-the-art facility. Already a preferred storage platform for many, it boasts one of the largest collections of historical timepieces from the early 1800s and is on permanent display at its private museum. At the same time, visitors have the chance to experience these vintage pieces in an immersive and engaging setting.
The exciting lineup of activities when coupled with an exceptional showcase of the independent brands’ savior faire makes Singapore Watch Fair the go-to destination for collectors and enthusiasts alike. Head down to Ngee Ann Plaza Civic Plaza for an unforgettable time revelling in the different manifestations of time.
For more watch reads, click here.
The post Singapore Watch Fair 2022: An Occasion To Celebrate Time appeared first on LUXUO.
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Could Crypto’s Recovery Come from a Crash in China’s Yuan?
Since China’s accession into the World Trade Organization, there has been constant pressure on the Chinese currency, the renminbi, otherwise known as the yuan, to appreciate.
And that would make sense.
As a country’s economy grows and becomes more powerful, and the rest of the world demands its goods and services, it would make sense that its currency should rise in value relative to others.
But Beijing has done a remarkable job of keeping the lid on the rise of the yuan, and not without reason.
By keeping the yuan cheap, Chinese wares have filled shelves from Sydney to Santiago, Boston to Berlin and everywhere in between, fueling China’s industrialisation and ascent to become the world’s second-largest economy.
But peel back the veneer of a currency that appears to have every reason to rise relentlessly and the picture is no longer so sanguine.
A Yuan for More Dollars
A once booming housing market that has lifted an entire generation out of poverty is faltering, and measures to shore it up appear half-hearted and poorly thought out.
The Chinese economy continues to struggle with periodic zero-Covid lockdowns.
And the People’s Bank of China, the central bank, has been cutting interest rates even as other central banks increase borrowing costs, providing an added incentive for Chinese to spirit their wealth offshore.
Combined, these forces have “conspired” to push the Chinese yuan down by over 8 per cent against the greenback this year alone, on course for its biggest annual drop since 1994.
For years, bearish investors have been warning that China’s banks have lent far too much money, to fund far too many wasteful projects, especially unnecessary real estate and infrastructure.
Although some have predicted that years of profligate lending will lead to an explosion of so many bad loans that Beijing will have no choice but to print money to bail out banks, leading to a devaluation of the currency, it hasn’t happened yet.
Until maybe now.
Because China’s housing market can no longer be used as an ATM, banks, shadow or otherwise, will soon be inundated by an avalanche of non-performing loans.
The faltering housing market could have been bolstered by China’s substantial manufacturing complex if not for the fact that Beijing’s Orwellian zero-Covid lockdowns are putting the kibosh on a lynchpin of the economy, with China on track for one of its slowest growth periods in modern history.
In the second quarter of this year, China’s economy shrank by 2.6 per cent, against the previous quarter, its first contraction since early 2020, when the pandemic first hit.
One of These Banks is Doing its Own Thing
At a time when central banks are tightening, the People’s Bank of China (PBoC) is doing its own thing, the PBoC is not quite the same, easing monetary policy and removing the shine off the yuan.
Beijing’s reluctance to condemn Russia’s invasion of Ukraine and Chinese President Xi Jinping’s cozy relationship with Russian President Vladimir Putin hasn’t helped either, with investors having an increasingly wide and justifiable list of reasons to pull money from China.
China’s embattled bond markets have already seen record amounts of foreign investment outflow this year, as have its stock markets.
And it’s not just foreign investors who have been leaving, well-heeled and entrepreneurial Chinese have as well, taking their wealth with them and just like in 2015, cryptocurrencies are one conduit to spirit their riches out of the Middle Kingdom.
To be sure, cryptocurrencies are merely a means to an end for most Chinese looking to evade strict capital controls. Ultimately, once the wealth has arrived at its intended destination, they will be looking to swap those digital assets for dollarised ones.
But such a view also overlooks the fact that the more Chinese who put their trust in cryptocurrencies to move money globally, the more will be open to doing so with each other as well.
As more financial institutions globally accept cryptocurrencies, whether for loans, or as an investment product, the legions of well-heeled Chinese who have spirited their wealth out of China may reconsider converting their crypto to cash right out the gate, given the growing options available with which to deploy such assets.
And as geopolitical tensions between the US and China rise, and the freezing of Russian assets in the dollarised global financial system still fresh in the minds of Chinese contending with a rapidly devaluing yuan, cryptocurrencies may yet receive an unexpected boost from the macroeconomic challenges facing the global economy.
- READ MORE: Crypto’s Role in a Post-Invasion World
Cryptocurrencies Coming of Age?
But it’s not just capital flight that may motivate the Chinese to take up cryptocurrencies against a rapidly sliding yuan, it’s the potential collapse of confidence in an asset class that most Chinese have only known to go up — real estate.
Since China Evergrande Group first encountered challenges with paying its massive debt, China’s real estate market has continued to come under increasing pressure.
For the Chinese, real estate is not just one out of a plethora of assets, it is the asset that forms the bulk of familial and generational wealth.
Chinese families often combine money between individual family units, children with parents, siblings with each other, scrimping and saving to make the down payment on their prized new homes in the hope of providing wealth for future generations and for a brighter future.
And since the reforms of the Deng era, when the Communist Party recognised property rights, such bets on real estate have paid off in spades.
Fortunes have been minted and those who could afford real estate quickly became rich beyond the dreams of avarice.
Billionaires built their fortunes atop concrete, steel and glass and Chinese families eager for a better life saw real estate as a one-way road to riches.
But hundreds of millions of Chinese homeowners may be in for a rude shock when they find out that the asset class they had bet the farm on, doesn’t always go up.
Typically, real estate ought to be a useful hedge against a rapidly devaluing currency, except that right now, China has far too much of it.
Decades of overbuilding have given rise to China’s infamous “ghost cities” and excess spending on infrastructure means that China is plagued with cities, airports and ports that are heavily under utilised, not to mention apartments buildings that remain empty.
China’s younger generation, who haven’t been able to get a leg-up on the property ladder, because of sky-high prices, won’t necessarily be eager to spend their rapidly devaluing yuan on mortgages even if Beijing can continue to maintain a loose monetary policy and low interest rates.
Bearing in mind that the Chinese have yet to experience the bursting of a real estate bubble, if and when it happens (because trees do not grow to the sky), the possible flight to other assets could involve cryptocurrencies in some way as well.
By Patrick Tan, CEO & General Counsel of Novum Alpha
Novum Alpha is the quantitative digital asset trading arm of the Novum Group, a vertically integrated group of blockchain development and digital asset companies. For more information about Novum Alpha and its products, please go to https://novumalpha.com/ or email: ask@novum.global
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