Evergrande surrendered 11 plots to authorities in Wuhan without compensation
In today’s roundup of regional news headlines, China Evergrande hands over a set of unused plots to officials in Wuhan, the mainland securities watchdog reveals plans to improve the balance sheets of quality builders, and Hong Kong property agencies prepare to let go of thousands of workers.
Evergrande Unit Surrenders 11 Plots of Land to Wuhan With No Refund
A unit of China Evergrande Group has returned 11 plots of state land to city authorities in central China after allowing them to lie fallow, in a sign of a festering cash crunch for the world’s most indebted property developer.
The land parcels, measuring a combined 1.5 million square metres (16.1 million square feet), were surrendered to the authorities in the Hubei provincial capital of Wuhan without compensation, according to an announcement last Friday by the local Planning and Natural Resources Bureau. Read more>>
China Regulator Plans to Improve Balance Sheets of ‘Good Quality’ Developers
China needs to implement plans to improve the balance sheets of “good quality” property developers reeling from a cash crunch in the sector, the head of the country’s securities regulator said Monday.
“(We) need to closely pay attention to the difficulties and challenges facing the property industry,” Yi Huiman, chairman of the China Securities Regulatory Commission, said during a financial forum in Beijing, Chinese media Yicai reported. Read more>>
Hong Kong Property Agencies to Cut Over 3,000 Jobs, Close Branches
More than 3,000 employees at property agencies will lose their jobs as the impact of Hong Kong’s slumping home market spills over into the labour market.
The four biggest property agencies — Centaline Property Agency, Midland Realty, Ricacorp Properties and Hong Kong Property Services (Agency) — are already reducing headcount and expect to let a total of at least 3,100 people go through early next year, as executives see little hope of a sales recovery before the Lunar New Year holiday at the end of January. Read more>>
EC World REIT Flags Potential Asset Sale Delay
The transaction financing long-stop date for the purchasers of EC World REIT’s divestment properties has lapsed, potentially delaying the divestment past the trust’s deadline to repay a portion of its outstanding loans.
Singapore-listed EC World REIT in October announced that it would be divesting its indirect interests in Bei Gang Logistics and Chongxian Port Logistics for a total of RMB 2.03 billion (now $280 million). Part of the proceeds from the divestment will go towards repaying 25 percent of the REIT’s outstanding onshore and offshore loans by 31 December, as required by its lenders. Read more>>
Co-Living Operator Hmlet to Launch First Hotel in Q1 2023
Singapore-based Hmlet has plans to launch a new hotel in early 2023, together with real estate partners TCRE Partners and JMD Group, the co-living startup said Tuesday.
The hotel, Owen House by Hmlet, comprises 106 rooms measuring up to 52 square metres (560 square feet). It is situated next to Farrer Park MRT station and features an island bar serving grab-and-go coffee in the day that turns into a speakeasy in the evening. Read more>>
PropertyGuru’s Q3 Earnings Reverse Into the Red
Singapore-based PropertyGuru on Monday posted a net loss of S$7.4 million (now $5.4 million) for the quarter ended 30 September, a reversal from its profit-making performance the previous quarter.
This comes as higher expenses weighed on the group’s bottom line, even though it reported a net profit of S$3.8 million in the second quarter, the first time since becoming listed on the New York Stock Exchange in March this year. Read more>>
Real Estate Costs Make Seoul More Expensive Than Tokyo for Expats
It’s more expensive to send employees to Seoul than to Tokyo or Fukuoka.
The rent for typical expatriate housing in Seoul costs on average $1,747, over $400 more than the rent in Tokyo and around $988 more than in Fukuoka, according to a recently released report by the Japan External Trade Organization. International schools, at around $50,000 per year in Seoul, are nearly double the cost of such schools in Tokyo. Read more>>
As the Property Market Slumps in China, Are Investors Turning to India?
Last week, the Chinese government released data showing that new home prices fell at their fastest rate in over seven years, while property sales measured by floor area fell for a 15th straight month in October.
Based on data from the National Bureau of Statistics of China, for the year-to-date period to October, investment in real estate development fell 8.8 percent compared with the same period in the previous year, commercial floor space sold dropped 22.3 percent, and revenue from commercial buildings sold plummeted 26.1 percent. Read more>>
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