Property investors shift to Southeast Asia amid Hong Kong unrest

Property stocks in Hong Kong have plummeted since June, with developers being forced to offer discounts on new projects and cutting office rents. (Reuters)
Updated 14 October 2019

Property investors shift to Southeast Asia amid Hong Kong unrest

  • The summer of rage in Hong Kong has been fueled by years of simmering anger toward Beijing

KUALA LUMPUR: From luxury Singapore apartments to Malaysian seafront condos, Hong Kong investors are shifting cash into Southeast Asian property, demoralized by increasingly violent protests as well as the China-US trade war.

Millions have taken to the streets during four months of pro-democracy demonstrations in the southern Chinese city, hammering tourism while also forcing businesses to lay off staff — and the property sector is feeling the pain.

Property stocks in one of the world’s most expensive housing markets have plummeted since June, with developers being forced to offer discounts on new projects and cutting office rents.

Hong Kong businessman Peter Ng bought a condominium on the Malaysian island of Penang — which has a substantial ethnic Chinese population and is popular among Hong Kongers — after the protests erupted.

“The instability was a catalyst for me,” the 48-year-old stock market and property investor told AFP, adding he was worried about long-term damage to the Hong Kong economy if the unrest persists. “Investors will always look at things like that, political stability.”

And Derek Lee, a Hong Kong businessman who owns a Penang apartment, said he knew others in the semi-autonomous city who were considering investing in Southeast Asian property because of the unrest.

“People are thinking about how to quicken their ideas, how to make a more stable life,” the 55-year-old told AFP.

Adding to the allure of Malaysia is its relative affordability and prices much lower than Hong Kong.

The Malaysia site of Southeast Asian real estate platform Property Guru has seen a 35 percent increase in visits from Hong Kong, according to its CEO Hari Krishnan. 

While Hong Kong’s protests are primarily pushing for greater democratic freedoms and police accountability, the summer of rage has been fueled by years of simmering anger toward Beijing and the local government over falling living standards and the high costs of living.

Hong Kong’s property market is one of least affordable in the world with sky-high prices fueled, in part, by wealthy mainlanders snapping up investments in a city which has failed for years to build enough flats to meet demand.

But now mainland Chinese, who traditionally viewed property in Hong Kong as a safe investment, are opting for rival financial hub Singapore as a result of the protests and the US-China trade war, according to observers.

There has been a jump this year in sales of luxury apartments in the city-state — which like Hong Kong is known for pricey property — driven partially by mainland Chinese buyers, according to the consultancy OrangeTee & Tie.

“The protests in Hong Kong have made some of the (mainland Chinese) based there ... (more concerned) about investing in Hong Kong real estate, so they carry that investment to Singapore,” said Alan Cheong, executive director of the research and consultancy team at Savills.

As well as hitting China’s economy, trade tensions may have discouraged some Chinese from investing in the West and pushed them toward Singapore, with its mostly ethnic Chinese population.

“I think they don’t want to go to the West,” said Cheong.

Singapore is “the closest country culturally to China other than Hong Kong, and I think they feel more comfortable with that.”

There are further signs the stable, tightly ruled city is benefiting from the Hong Kong turmoil — Goldman Sachs last week estimated as much as $4 billion flowed out of Hong Kong to Singapore this summer.

And analysts warned there was little hope of Hong Kong’s property market recovering soon.


Google enters battle for cloud gaming market

Updated 17 November 2019

Google enters battle for cloud gaming market

SAN FRANCISCO, California: Ever-expanding Google becomes a gaming company Tuesday with the launch of its Stadia cloud service that lets people play console-quality video games on a web browser or smartphone.
The Internet giant hopes to break into the global video game industry expected to top $150 billion this year, with cloud technology that could broaden audiences attracted by rich new features as well as ease of access with no more need for consoles.
But analysts say Stadia’s outlook is uncertain as its faces rivals such as PlayStation Now in an emerging and highly-competitive market.
Stadia plays into a trend in which content — ranging from blockbuster films to work projects — lives in the cloud and is accessible from any device.
“All of these new services are merely pointing out that we don’t need sophisticated hardware in the home to access entertainment,” said Wedbush Securities equity research managing director Michael Pachter.
Google last month sold out of “Founder’s Edition” kits, which are priced at $129.
Each kit contains a Stadia controller and a pendant-shaped Chromecast Ultra wireless connection device that plugs into television sets.
Stadia games are playable using Google Chrome web browser software on computers.
It also works with Google-made Pixel smartphones from the second-generation onward, and on televisions.
Stadia Pro subscriptions, priced at $10 a month in the US, will be available in 14 countries in North America and Europe.

'Underwhelming'
However, analysts say Stadia could wind up as another “bet” that Google walks away from if it fails to live up to expectations.
“Stadia will live or die by its content,” said Ovum senior analyst George Jijiashvili.
“The announced 12 launch titles are underwhelming.”
Subscribers will be able to buy games that will be hosted at Google data-centers, but some free games will be available to subscribers, starting with “Destiny 2: The Collection.”
Stadia on smartphones will work with WiFi connections rather than rely on mobile telecom services.
Being able to play without lags or interruptions is paramount to gamers, and flawed Internet connections could cause frustration. Internet speed will also determine how rich in-game graphics can be.
Some promised features such as integration with YouTube will not be in place at launch.
“Stadia appears to be rushed out the door before fully ready and, worryingly, Google is risking falling short on its promises,” Jijiashvili said.
“These shortcomings however would be easily overlooked if Google can deliver a very reliable and high-quality game streaming service.”
Google appears committed to doing just that, according to Ubisoft senior vice president of partnerships Chris Early.
The French video game giant has been working with Google and its games are among titles coming to the service.
“From what I have seen, their plans are too deep; they are too good, and they are too invested,” Early said. “They are not calling it quits any time soon.”
He expects a long launch period during which Google will beef up Stadia.
“If there is a one-day problem at launch, it isn’t the end of the world; it isn’t even close,” he said, stressing the potential for Stadia to let people play without investing in consoles.
But Pachter questioned whether subscriptions were the right approach.
“The right model is pay as you go or pay for the game and play unlimited without a subscription,” Pachter said.
“Amazon will try one of those and will win the streaming wars.”
Amazon has game studios but no online game service.

Project xCloud
US technology veteran Microsoft has been testing a Project xCloud online game platform.
“Next year, we’ll bring Project xCloud to Windows PCs, and are collaborating with a broad set of partners to make game streaming available on other devices as well,” Microsoft corporate vice president Kareem Choudhry said in an online post.
Sony Interactive Entertainment last month slashed the price of its PlayStation Now cloud video game service by about half in the US to $10 monthly.
Japan-based Sony also boosted the library of games that PlayStation Now users can access through its consoles or on personal computers powered by Windows software.
Sony and Microsoft are also poised to release new-generation video game consoles next year.
“While we expect dedicated consoles to eventually lose relevance in the face of cloud gaming services, there’s no guarantee that it will be Google’s service — rather than Sony and Microsoft’s — that catalyzes this trend,” said Ovum senior analyst Matthew Bailey.