Even Singapore’s biggest developer is having a tough time in 2020
The uneven impact of the coronavirus-fueled economic woes is evident in today’s real estate headlines as developers large and small report challenges, while market statistics from the mainland report all things normal.
CapitaLand warned on Monday of a dip in profits for the first half of the year, while a mainland developer defaulted on yet another bond payment.
At the same time, new market research shows home sale prices on the rebound in mainland China with the country’s largest developers reporting stable sales for the first half of 2020. Keep reading for all the details.
CapitaLand Warns of Drop in Profitability for First Half of 2020
CapitaLand on Monday said it expects the group’s total profit after tax and minority interests (Patmi) for the six months ended June 30, 2020, to be “materially and adversely” impacted, based on preliminary estimates.
Operating Patmi – which refers to profit from business operations excluding any gains or losses from divestments, revaluations and impairments – is expected to reduce by 25 per cent to 35 per cent from $361.3 million for the first half of last year, the property group said. Read more>>
China’s Tahoe Group Misses Another Bond Payment
Chinese luxury villa developer Tahoe Group failed to repay investors of a domestic bond, in a sign of increasing financial strain on the mainland’s aggressive home builders as the coronavirus pandemic exacerbated a liquidity crunch.
The Shenzhen-listed company was unable to make payment for bond principal and interest worth 1.6 billion yuan (US$228 million) due on Monday “despite efforts to raise funds in many ways”, Tahoe Group said in a stock exchange filing on Tuesday. The bond, with a face value of 1.5 billion yuan, was sold in July 2017 with an annual coupon of 7.5 per cent. Read more>>
China Secondary Home Sale Prices Bounced Back in June
Resold home prices in more than 230 Chinese cities climbed in June from the end of last year, while the figures declined in some 70 cities, Securities Times reported.
Compared with the end of 2019, a total of 10 cities recorded an increase of more than 10 percent in previously owned home prices last month, the paper said, citing data from the China Real Estate Association. East China’s Lianyungang topped the list of resold home prices growth among nationwide cities with an increase of 14.99 percent, followed by Shenzhen with a rise of 14.37 percent to 74,929 yuan (about 10,657 U.S. dollars) per square meter. Read more>>
Mainland Developers Kept Sales Steady in 2020 1H
China’s top real estate developers saw stable sales in the first half of this year, an industrial report showed.
For the January-June period, the average sales volume of the top 100 real estate developers reached 51.21 billion yuan ($7.25 billion), said the report by China Index Academy, a property research institution. Read more>>
China Jinmao Plans HK$3.4B Share Sale
Real-estate developer China Jinmao Holdings Group Ltd. said it’s planning to raise 3.42 billion Hong Kong dollars ($441 million) through a placement of shares.
The company is planning to issue a total of 602.34 million new shares at a price of HK$5.70 each, it said Monday. The shares are being sold at a 6.6% discount to the last traded price of HK$6.10, the company said. Proceeds from the placement will be used to fund business expansion. Read more>>
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