China Vanke is adding to its Hong Kong portfolio
Mainland investors continue to expand their presence in Hong Kong this week as China Vanke teamed up with a Qingdao-based builder to snatch up a residential plot in the New Territories.
Also in the news, Morgan Stanley says the Asia Pacific commercial property market may be close to bottoming out, while bankers in Hong Kong fret over a 30 percent drop in asset values in the city.
Vanke, Qingjian Buy Tai Po Residential Site for HK$3.7B
Mainland developer Vanke Property (Hong Kong) and CNQC International (1240) won a residential site at Ma Wo Road in Tai Po for HK$3.7 billion ($477 million), or HK$4,739 per buildable sq ft, in line with market estimates.
Market surveyors valued the site at HK$2.74 billion to HK$4.57 billion. This indicates that developers are positive about the outlook for the local home market, said Centaline Surveyors executive director James Cheung King-tat. Read more>>
Morgan Stanley Study Says APAC Office Demand Near Bottom
Hong Kong’s office landlords may have reached peak suffering from the rental slump, according to US investment bank Morgan Stanley. The work-from-home arrangement may not inflict much more pain.
Office rents in the city declined by 13 per cent in the first half this year, the most six among Asian cities, it said, driving stock prices deeply below their asset backing. While the trend may persist this year, the damage is already in the price, it added. Read more>>
Lending Squeeze Could Trigger Hong Kong Asset Sell-Off
Commercial lenders in Hong Kong say they are concerned about a 30% drop in building values over the past 12 months and will consider calling in or restructuring loans if values fall much further.
If lenders demand repayment of loans or try to tighten terms, it could set off a wave of property sales that might depress prices even further in the Chinese-run territory, which is already stuck in a recession due to the U.S.-China trade spat, violent street protests last year and the new coronavirus. Read more>>
Hang Lung, Wharf Downbeat on HK as Earnings Disappoint
Two big Hong Kong landlords gave a downbeat outlook on Thursday for commercial property in the Asian financial hub, saying they expect the pandemic and local factors to continue to weigh on consumer spending and business for the rest of the year.
“Hong Kong is hit by three headwinds, which is the epidemic, violent protests last year, and a ‘full-blown war’ between China and the U.S. This is bad for businesses,” Ronnie Chan, chairman of Hang Lung Properties (0101.HK), said at an earnings conference. Read more>>
Ascott Adds 1,000 Co-Living Units in Australia, China, Philippines
CapitaLand’s wholly owned lodging business unit The Ascott Limited says its co-living brand, lyf, has added over 1,000 units across six properties in Australia, China, and the Philippines on Thursday (July 30).
This brings the total number of properties under lyf to 14. Thirteen of these properties are slated to be opened between 2020 and 2024. The co-living brand is also set to open its first property in Bangkok, Thailand, on July 31. Read more>>
Quarz Capital Builds 5% Stake in Singapore’s Sabana REIT
Activist investor Quarz Capital Management has emerged as a new substantial shareholder at Sabana Shari’ah Compliant Industrial REIT (Sabana REIT).
According to a July 30 filing, Quarz bought 5,700 shares at a total cost of $2,166 via market transaction. This brings Quarz’s total stake into Sabana REIT to 52.7 million units, or 5%. Any shareholder who has crossed the 5% stake threshold has to disclose its interest on SGX. Read more>>
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