Developers headed in opposite directions lead today’s collection of real estate news from around Asia as Singapore’s biggest builder announced that its profits jumped 71 percent in the fourth quarter on the same day that Hong Kong’s Chinese Estates warned that its net profit for the full year of 2018 is expected to have dropped 78 percent. Also in the news, Hong Kong’s government may have realised that fake islands and Greater Bays have not yet relieved the housing pressure on the city’s non-billionaires as Carrie Lam’s office announced plans to trim the edges of a private golf course in favour of building more homes. All these stories and more await you below.
Better operating performance, higher gains from asset recycling, and fair value gains from revaluations of its investment properties boosted CapitaLand’s results for the fourth quarter. For the three months ended Dec 31, net profit rose 71.2 per cent to S$475.7 million, from S$277.8 million last year.
The higher earnings were also underpinned by greater contributions from residential projects in China, as well as newly acquired and operational properties, CapitaLand said. Read more>>
Hong Kong property developer Chinese Estates Holdings said on Wednesday it expected a drop as much as 78 per cent in its full-year net profit for 2018, which it said was down to poor sales performance and losses on investments.
The net profit attributable to its shareholders will drop by between 68 per cent and 78 per cent from the HK$3.7 billion (US$471.41 million) in gains reported in 2017, according to a company filing with the Hong Kong stock exchange ahead of its annual results release. Read more>>
Hong Kong earmarked a slice of its historic Fanling golf course for public housing on Wednesday, a controversial plan which exposed the city’s dramatic social divide and was resisted by international golfing stars.
The city government said it had accepted a proposal to take back less than a fifth of the exclusive, 170-hectare course as authorities scramble to find new land for housing in the world’s least affordable property market. Read more>>
ESR has moved a step closer with its AUD723m (€457) takeover of Propertylink Property Group after Centuria Capital Group agreed to sell its 19.51% stake in the target company.
Centuria’s acceptance has lifted the Australian arm of the pan-Asian logistics group’s interest in Propertylink to 74.5%. Centuria, while it held the 19.51% blocking stake in Propertylink, had been the main stumbling block to ESR progressing further on its offer. Read more>>
Propnex Realty has entered into a strategic collaboration with Global Alliance Property (GAP), which is a wholly-owned indirect subsidiary of China Real Estate Grp (CREG).
Under the collaboration, salespersons from GAP will be transferred to PropNex. Meanwhile, GAP – which operates under the Century 21 franchise – will discontinue its real estate agency business, while Catalist-listed CREG will continue to forge ahead with real estate development in China. Read more>>
CBRE Group Inc. and other big brokers are trying to muscle their way into the increasingly crowded but lucrative co-working business, aiming to help landlords create their own flex-space companies that cut out middlemen like WeWork Cos.
Large companies have embraced co-working and flex space because it allows them to expand and contract their space quickly. They have been rapidly shunning the 10- and 15-year leases that have been a mainstay of the office space industry for decades. Read more>>