WeWork’s centre at the Octa Tower has gone from “opening soon” to MIA
A US co-working giant leads the way in Mingtiandi’s roundup of Asia real estate headlines today with the news that Softbank’s biggest bet has shelved plans to open at least three new locations in Hong Kong.
In other news around the region, the mainland’s second-largest developer says it lost RMB 51 billion in sales during the first two months of the year, while Hong Kong developers try to tempt buyers into the sales offices with big discounts on new homes.
Elsewhere, Japan’s land prices rose for the fifth year running in 2019, as tourism and low interest rates push up values in popular destinations.
WeWork Shelves Plans for New Hong Kong Locations
WeWork has indefinitely delayed the opening of at least three co-working spaces in Hong Kong that were planned for late last year. Now, market observers believe the coronavirus pandemic could force the company to retreat from the city as it takes a toll on an economy already in recession.
The cash-strapped company had planned to open stations in Hysan Place in Causeway Bay and Sun Life Tower in Tsim Sha Tsui at the end of 2019, while its operations in Octa Tower in Kowloon Bay have already been delayed by more than six months. Read more>>
Vanke Sees RMB 51B Impact from Epidemic
A coronavirus epidemic is hitting the cashflow of China Vanke, thanks to a drop of 51 billion yuan ($7.3 billion) in sales in February and March from a year ago, the nation’s second largest property developer by sales said on Wednesday.
Official data show property investment in China fell at its fastest pace on record in the first two months of the year, as home sales, construction and other economic activity all nosedived because of the virus. Read more>>
Hong Kong Developers Cut Prices Amid Cratering Market
Some Hong Kong developers are dangling more discounts to attract buyers in the first few home launches since the coronavirus outbreak. The reception in the coming weeks could signal if the market has further room to slide.
China Evergrande widened the discount at its Emerald Bay project in Tuen Mun on Saturday to 14 percent from its list price, plus a HK$20,000 ($1,545) rebate. That is up from 11 percent at the launch of the same project last year. Read more>>
Manulife Secures 2 Leases in US
Manulife US Real Estate Investment Trust has secured a US real estate enterprise as a long-term tenant at its Plaza office building in Secaucus, New Jersey, it said on Wednesday.
The new tenant signed the lease on 13 March for roughly 53,000 square feet (4,924 square metres) for its headquarters with a 12-year tenure and positive rental reversion, the REIT said. Read more>>
Arcc Spaces to Launch Co-working Location in Singapore
Singapore-based co-working space operator Arcc Spaces is set to launch its flagship space at One Marina Boulevard in April.
The new space will occupy 19,000 square feet on the 20th floor of the building, with views of Marina Bay and the CBD. Offerings include private rooms, meeting rooms, and a convertible event area of 1,500 square feet that can accommodate up to 80 guests. Read more>>
Japan Land Prices Up for 5th Straight Year
Japan’s land prices grew for a fifth straight year in 2019, helped by foreign tourism and low interest rates with some regions posting their best gains since the country’s property crash of the early 1990s.
A boom in tourism has been pushing up land prices especially among destinations popular with foreign visitors such as northern Hokkaido, southern Okinawa and Japan’s ancient capital of Kyoto. 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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