Here is a list of the day’s latest China real estate news collected from around the web:
- Shanghai, Beijing Lure Investors as 2nd-Tier Cities Sour
Real estate investors and developers are abandoning a two-year foray into China’s provincial cities and switching back to Shanghai and Beijing, where offices are fuller, rents are higher and home prices are stabilizing.
Of the $34 billion of direct investment in commercial real estate in 2010 and 2011 combined, 20 percent went to China’s 50 biggest second-tier cities, according to Jones Lang LaSalle Inc., up from 5 percent in the prior two years. That percentage for second-tier cities may decline in the “immediate future,” according to Michael Klibaner, China head of research for the world’s second-biggest commercial realtor.
- HK’s lack of new office supply threatens status as corporate hub
Hong Kong, home to some of the world’s highest commercial property rents, is facing a shortfall of nine million square feet of office space by 2020, threatening its status as a leading destination for companies, a report shows.
The study by commercial real estate services firm CBRE comes just days after Hong Kong announced its first residential property tax targeted at overseas buyers as U.S. quantitative easing and record-low interest rates boost the risk of a housing bubble in the Asian financial centre.
- Fortunes starting to turn for China’s top appliance makers
China’s home appliance makers reported stronger third-quarter profits on the back of a reviving property market, and the current period could be even stronger if real estate holds up.
Qindao Haier Co Ltd (600690.SS), the country’s second-biggest appliance maker by sales, reported a 22 percent rise in profit during the July-September period, while bigger rival Gree Electric Appliances Inc (000651.SZ) posted a 57 percent jump in earnings.