A rendering of Landbridge Group’s planned Darwin hotel
Leading the real estate news today from around Asia, the mainland company that bought Darwin port in Australia three years ago now has won approval for a new luxury hotel next to the controversial port project. Also in the news, Shanghai has cancelled its fifth land sale in just over a month and Singapore’s hopeful condo owners are still trying for collective sales. Read on for all the details on these stories and more.
Chinese Developer Landbridge Wins Approval for A$200M Darwin Hotel
Chinese property developer Landbridge Group has received planning approval for a $200 million luxury hotel on Darwin’s foreshore.
Landbridge, who controversially bought the Port of Darwin for $506 million on a 99-year lease in 2015, has now been granted approval to build the Darwin Westin. Read more>>
Fifth Shanghai Land Sale Cancelled in Last 40 Days
The Shanghai Land Exchange Market announced on July 23rd that it was cancelling the planned sale of a 31,100 square metre residential site in the city’s Yangpu district, which had carried an auction minimum of RMB 4.6 billion.
The aborted land sale is the fifth such cancellation in a little over a month, which sees the local government of China’s commercial capital giving up on more than RMB 10 billion in potential land premiums. In a sign of slowing developer demand for sites, a pair of land parcels that did sell this week each attracted only one bidder each and were transacted for the auction minimum. Read more>>
Owners of Condo Complex on SG’s Farrer Road Go for S$268M Collective Sale
The owners of Sutton Place, a freehold development off Farrer Road, have put the property up for collective sale by tender, with a reserve price of $268 million.
At that price, the land rate for the site works out to $1,917 per square foot per plot ratio, after factoring a development charge of about $17.88 million, which is subject to confirmation from the relevant authorities, said Knight Frank Singapore, its sole marketing agent. Read more>>
Revenue for Ascott REIT Rose 6% in Q2
Ascott Residence Trust’s (Ascott REIT) revenue rose 6% YoY to $130.5m in Q2 2018 fueled by 2017 acquisitions, an announcement revealed. Its gross profit grew 7% to $63.1m thanks to higher revenue.
In 2017, the firm acquired assets including Ascott Orchard Singapore, Citadines City Centre Frankfurt and Citadines Michel Hamburg that provided income stability through master leases. Meanwhile, DoubleTree by Hilton Hotel New York – Times Square South continues to reap strong demand. Read more>>
Surge of New Home Sales Expected to Bring Down HK Rents
Investors who bought new apartments in the Hong Kong districts of Hung Hom, Tsuen Wan, Tseung Kwan O and Kai Tak about three years ago face intense competition for tenants, as thousands of apartments are due for delivery and this could lead to a fast and sharp decline in rents, agents said.
An abundant supply of completed apartments will become available for leasing in these areas, particularly tiny apartments, said agents. Read more>>
Foreign Bargain Hunters Said Ready to Buy Mainland Properties
Foreign buyers are increasingly investing in Chinese commercial property, making the most of the absence of once cash-flush Chinese competitors whose hands are now tied by Beijing’s financial deleveraging campaign, according to market watchers.
“Overseas investors have always been interested in commercial property in China, especially those in its tier 1 cities. The difference now is that domestic investors are grappling with financing difficulties and rising funding costs, which has given prominence to overseas investors’ activities,” said Xu Xixi, the director of JLL’s Capital Market for North China. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply