Li Ka-shing says the HK and mainland markets are getting more challenging
A flood of new money lifted China’s average home prices by the fastest rate in nearly two years last month, but the support didn’t come fast enough to help out the profits of some of the region’s biggest developers. Plus, troubled developer Kaisa closes on a settlement with its creditors and a mainland developer closes on a $390 million New York site acquisition. Read on for all the stories.
China Home Price Growth Climbs to 3.6% on Big City Surge
China’s home prices rose 3.6 percent in February, above the previous month’s 2.5 percent gain, an official survey showed on Friday, marking the quickest year-on-year increase since June 2014.
Compared with a month earlier, home prices in February rose 0.6 percent, up from January’s 0.4 percent, Reuters calculated from data issued by the National Bureau of Statistics(NBS). Read more>>
Li Ka-shing Says HK, Mainland Markets Challenging as CK Property Reports Earnings
Billionaire Li Ka-shing’s (李嘉誠) Cheung Kong Property Holdings Ltd (CK Property, 長地集團) said the real-estate market in Hong Kong remained challenging as sales in the city plunged to the lowest in 25 years last month.
“The property market conditions remained challenging in Hong Kong and on the mainland during last year,” the firm said in a statement on Thursday announcing an underlying profit of HK$15.6 billion (US$2 billion) for its first full year as a publicly traded entity. “All development and marketing plans have proceeded cautiously according to their scheduled timetable.” Read more>>
Sweetened Kaisa Settlement Accepted by 80% of Investors
Troubled Chinese developer Kaisa Group, which has been struggling to restructure its debt after defaulting on US dollar bonds, said it has won support from investors representing more than 80 per cent of its offshore debt claims.
The long-discussed restructuring plan looks set to proceed after the developer provided a better settlement for creditors. Read more>>
Ascott Launches Tujia Somerset Brand, Aims for 2000 China Units This Year
CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited, has launched its new Tujia Somerset brand of serviced residences.
The brand will cater to the booming segment of middle-class travellers in China.
Ascott’s joint venture company with Tujia.com International, China’s largest online apartment sharing platform equivalent to Airbnb, has sealed contracts to manage six serviced residences to be operated under Tujia Somerset brand, giving a significant boost of 1,005 units to Ascott’s portfolio in China. Read more>>
Oceanwide’s proposed tower (at centre in this rendering) would form part of the South Seaport development
Oceanwide Holdings Closes on $390M NYC Site Acquisition
A Chinese investment group wrapped up today the $390 million purchase of a Downtown development site from the Howard Hughes Corporation, Commercial Observer has learned, marking one of the largest land deals so far this year.
China Oceanwide Holdings bought 80 South Street between Fletcher and John Streets from the Dallas-based company, which owned it for a little more than a year. The property is currently zoned for a 818,000-square-foot, mixed-use building. Read more>>
Kerry Properties Says Core Profit Slid 21% in 2015
Kerry Properties said its underlying profit plunged 21 per cent last year to HK$3.48 billion due to lower property sales.
In a filing with the Hong Kong stock exchange on Friday, the company said core profit, excluding revaluation gains on investment properties, totaled HK$3.48 billion last year, compared to HK$4.38 billion in 2014. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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