Mainland developers saw profits slide in 2015 as home-shopping fell out of favor
30 out of China’s 59 top developers suffered declining net profits last year, helping to explain why these mega-developers are looking for deals overseas or branching out into other industries. Meanwhile one of the country’s biggest real estate firms has secured a $30 million loan to jumpstart a Los Angeles apartment project, and Shanghai’s secondary home market reported a 112 percent jump in deals for March. Read on for all these stories and more:
Half of Mainland Developers Saw Net Profits Slide in 2015
Half of China’s listed property developers saw their net profits decline last year as the country’s real estate market cooled.
So far, 59 real estate firms have disclosed their annual results. Thirty posted a drop in net profits and, of those, eight saw losses, the Centaline Property Agency said yesterday. Read more>>
Gemdale Gets $30M Loan for LA Project
The Chinese developer behind a large multi-family project on Western Avenue near Sunset Boulevard in Hollywood has secured a $30 million bridge loan to help get the project off the ground.
Gemdale Corp and its local partner La Terra Development plan to build 253 residential units and 4,060 square feet of commercial space on the site, at which is currently home to an office building and a parking garage. Gemdale plans to sell the 68,834 square-foot office building and build a new parking structure as well as two seven-story multifamily buildings on the remaining land on the 3.48-acre site. Read more>>
Shanghai Secondary Home Market Jumped 112% in March
Sales of pre-owned houses more than doubled in Shanghai in March amid a bullish buying mood, which also lifted prices.
Sales of pre-owned homes jumped 112.2 percent from February to around 57,000 units last month, Shanghai Centaline Property Consultants Ltd said in a report yesterday. The increase marked an even notable surge of 170.8 percent year on year. Read more>>
Nomura Expects HK Home Prices to Fall 19% in 15 Months
Hong Kong home prices are expected to fall a further 19 per cent through to the second quarter of 2017, but the decline could go even deeper in the event of yuan devaluation or an uptick in interest rates, according to Nomura.
Together with a 11 per cent decline from September’s peak, Nomura’s prediction amounts to a cumulative 30 per cent correction in home prices. Read more>>
Swire, SHK and Wheelock in HK Mid-Levels Price War
A price war among desperate developers is moving to the city’s prime areas, with Swire Properties pitching its new project in West Mid-Levels at about 20 per cent lower than a rival development nearby.
While Sun Hung Kai Properties, Wheelock Properties and Kerry Properties are slashing prices in Ho Man Tin, Swire’s deep discount brings the price war to the heart of Hong Kong Island. 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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