Glut Means Gloom for China’s Once-Sunny Commercial Property Sector – and more of Today’s China Real Estate Links | August 30, 2012

Here is a list of the day’s latest China real estate news collected from around the web:

• Glut Means Gloom for China’s Once-Sunny Commercial Property Sector

  A glut of office space in some Chinese cities appears to be taking its toll on the country’s commercial property sector, dimming prospects for a part of the economy that had been held up as a cause for hope amid anxieties over slowing growth. While office rents continue to edge upwards in Beijing and Shanghai, other cities aren’t faring as well, according to new figures from property consultancy Colliers International.High-end, or so-called Grade A, office rents declined 0.3% in Guangzhou and 3.54% in Chengdu in the second quarter when compared to the first quarter, Colliers said this week, adding that vacancy rates rose as new office towers opened for business.

• China Retailers Lose Steam, Deepening Wen’s Challenges

  China’s retailers from clothing to computers are reporting weaker sales growth, undermining Premier Wen Jiabao’s goal of relying more on consumer spending for expansion as the economy cools.Passenger-vehicle sales trailed analysts’ estimates in July. Sportswear seller Li Ning Co. shut 1,200 stores in the first half and department-store chain Parkson Retail Group Ltd. (3368)’s same-store sales rose at less than a quarter the pace of a year earlier. Gome Electrical Appliances Holding Ltd. (493) said it would report a first-half loss on lower sales.

• China economy shows signs of stabilizing: NDRC

  China’s economy is stabilizing slowly as pro-growth government policies gain traction while real estate curbs have surpressed speculation, the head of the country’s top planning agency, the National Development and Reform Commission, said on Wednesday.Zhang told a meeting of the National People’s Congress (NPC), China’s top legislature, that China’s two-pronged policy programme had been effective.

• China’s Sun Art Hypermarket Chain Net Profit Jumps 75pc

  China’s top hypermarket chain, Sun Art Retail Group Ltd, posted a 75 per cent jump in first-half net profit today, but it flagged a delay in new store openings and said increasing competition meant the industry was ripe for consolidation.The company’s earnings, helped by effective cost controls and an expanded sales network, were a rare bright spot in an earnings season that has seen scores of Chinese companies miss forecasts and warn of an uncertain outlook.Sun Art’s resilience to China’s economic slowdown comes as consumer companies grapple with bloated inventories and sluggish demand.

• US realtor RE/MAX to enter China market through franchise deal

  RE/MAX has sold franchise rights for China including the Mainland, Hong Kong and Macau, raising its overall country count to more than 85, a larger global footprint than any other national franchise real estate company.The new RE/MAX China ownership group is based in Hong Kong and has extensive experience in real estate, banking, financing and franchising. They are perfectly positioned to aggressively grow the RE/MAX organization throughout the country of roughly 1.3 billion people.

This list is updated daily, so tune in again tomorrow for more up to date information, or subscribe to our daily email news digest to get this delivered to your mailbox.