Evergrande’s Xu Jiayin will be having some meetings about his bonds this year
The biggest industry in Asia’s biggest wealthiest city is back on the rise according to a straw poll of property analysts, which puts their prediction of higher prices on the way for Hong Kong housing at the top of Mingtiandi’s headline roundup today. A by-product of those rising home prices is getting some attention from a US fund manager which is betting on the city’s self-storage market and on the mainland, China’s third-largest developer has rolled out the latest update on its $100 billion debt mountain. Keep reading for the details on these stories and more.
Analysts Call End to Hong Kong Housing Correction in Poll
More than half of market observers believe that the correction in Hong Kong’s home prices is over, according to a straw poll conducted by the South China Morning Post.
Thirteen out of the 23 respondents including developers, lawyers, economists and veteran investors interviewed between March 22 and 25, said they expect prices of new homes to rise by up to 15 per cent on the back of pent-up demand. The rest however expect prices to fall further by as much as 5 per cent because of the uncertain global economic outlook. Read more>>
Evergrande Faces Repayment of $13.3B in Bonds by End 2020
China Evergrande Group reported its 2018 financial results this week and gave investors 17 billion new reasons to gape at the risks surrounding China’s most aggressively financed major developer.
The Shenzhen-based firm, which was the mainland’s third-largest developer by sales in 2018, has debt maturing in 12 months or less that exceeds its cash by 114 billion yuan ($17 billion), according to its annual report, which was released on Tuesday. Evergrande has around $13.3 billion of bonds falling due by the end of 2020, with 47 percent of its $100 billion debt due by the end of 2019. Read more>>
China Vanke Notches 22.8% Jump in Core Profit
China Vanke Co , the country’s No. 2 property developer by sales, reported a 22.8 percent rise in 2018 core profit on Monday helped by higher margins.
Its results highlight overall strength in earnings for the sector, with most of China’s major developers such as Country Garden reporting record profits recently, although analysts expect profit growth to slow in the second half. Read more>>
Heitman Recommends Self-Storage as Lucrative Cash Stash
Chicago-based real estate investment firm Heitman is betting on the self-storage market as an emerging theme in commercial properties in Asia.
Heitman, which oversees US$41.7 billion in assets, hopes to expand its investments in mini-storage concepts in Asia, adding to a portfolio of such holdings in Australia, Singapore, and Japan. Read more>>
Singapore Brokers Teaming Up to Buy 51% of Listings Site
The Singapore Estate Agents Association (SEAA), a grouping of real estate players, announced on Tuesday a proposed acquisition of a 51 per cent stake in online property platform SoReal Prop, which is jointly founded by ERA Realty, Huttons Asia and PropNex Realty.
The association said that the acquisition is a “timely” one that would help strengthen the capabilities of its nearly 4,700 real estate agencies and salesperson members, equipping them with innovative digital tools and enabling them to offer customer advice and perform tasks more quickly. Read more>>
Owners of SG’s Golden Mile Make Fresh Try at Collective Sale
Iconic development Golden Mile Complex will today be launched for tender a second time after it closed its initial tender on its collective sale on Jan 30. Its reserve price remains unchanged at $800 million.
The 718-unit property in Beach Road has a land area of about 1.3ha and is zoned for commercial use under the Urban Redevelopment Authority (URA) Master Plan 2014. The URA has earlier said that the development’s landmark main building, known for its distinctive step terrace, will have to be retained. 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.
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