Here is a list of the day’s latest China real estate news collected from around the web:
Brookfield Property Partners L.P. BPY has reached an agreement under which BPY along with its institutional partners will invest up to US750 million of preferred equity in China Xintiandi, a wholly owned entity of Hong Kong listed developer ShuiOn Land .
China Xintiandi (CXTD) owns Shui On Land’s premier portfolio of office and retail assets in Shanghai. It is anticipated that CXTD will expand through further acquisitions and growth of the portfolio in Shanghai and other major cities in China.
CXTD was established by Shui On Land in 2012 as its owner of prime commercial and retail properties in China. Shui On Land is a flagship property developer which has established a solid foundation in China and has a proven track record in developing large-scale, mixed-use,city-core redevelopment projects and integrated residential development projects.
The property bubbles in China’s third- and fourth-tier cities are bursting, according to an official from the State Council, China’s cabinet.
Li Wei, director of the State Council’s Development Research Center, said that land and housing supply in the first-tier cities is still tight, resulting in a continued increase in housing prices. Land and housing supply in third- and fourth-tier cities, on the other hand, is more than demand. Cities like Wenzhou in China’s eastern Zhejiang province and Ordos, one of the 12 subdivisions in Inner Mongolia, have seen their housing prices slump.
Chinese developers rose by the most in more than a month in Shanghai after a meeting by the ruling Communist Party fueled speculation that the authorities will refrain from imposing further property curbs.
An index tracking Shanghai-listed real estate companies jumped as much as 2.9 percent, the most since Sept. 23, and was up 1.6 percent as of 12:13 p.m. local time. China Vanke Co., the biggest developer by market value traded on the nation’s exchanges, climbed 2.4 percent to 9.30 yuan in Shenzhen after surging as much as 6.3 percent, the most since July 10.
A wider property tax is said to be on the agenda of the third plenary session of the Communist Party’s Central Committee to be held from November 9-12, mainland media reported yesterday.
“Local governments cannot rely on land sale revenue. A property levy is needed to lift fiscal income,” China Business News reported.
At present, only Shanghai and Chongqing levy a property tax, targeting those owning several homes and high-end properties.
While the Chinese real estate industry is marching into the overseas market, its first choice is usually countries where there are many Chinese people, such as the US, Canada, Australia, New Zealand, Malaysia and Singapore, International Finance News reported.
Chinese real estate enterprises investing in the overseas property market can date back to the year 2006, when Shanghai Industrial Group, joined by Ningbo United Group, Jinjiang International Group and Greenland Group, made a $1.346 billion investment of the “Baltic Pearl” project at Finland Bay in St. Petersburg, Russia.
The most recent investment was made on October 2012. Greenland Group and US Forest City Group started a joint venture and made an acquisition of the Brooklyn Atlantic Square real estate project. The total investment exceeded $5 billion and is the largest single real estate project in the last 20 years in New York. Greenland Group has successfully entered six countries including the US, South Korea and Australia.
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