Xi Jinping says developers can wave bye-bye to another funding channel
In today’s roundup of regional news headlines, China presses pause on private equity funds seeking to raise money to invest in residential property developments, Australia’s Lendlease plans a restructuring to cut costs, and Hong Kong’s New World Development sees its first cancellations at the troubled Pavilia Farm III project.
China Halts Approvals of Private Real Estate Development Funds
China is halting private equity funds raising money to invest in residential property developments, turning off the spigot on one of the last stable funding resorts for the struggling sector.
The government-endorsed Asset Management Association of China has verbally informed private equity firms that it would no longer be accepting the required registrations to set up funds to invest in projects, people familiar with the decision said, requesting not to be named because the matter is private Read more>>
Singapore Developers’ Private Home Sales Surged 82% in July
Real estate developers in Singapore moved 1,589 private homes in July, an 82.2 percent surge from the 872 units sold in the previous month.
The figures — which exclude executive condominium units — were released by the Urban Redevelopment Authority on Monday, based on its survey of licensed housing developers. Read more>>
Hong Kong Lived-In Home Prices Hit New High as Economy Rebounds
The first sign that Hong Kong home prices have reached new highs has emerged.
The closely watched Centa-City Leading Index has broken the previous record set two years ago as the economy recovers and coronavirus cases subside. Read more>>
Lendlease Plans Restructuring, Warns of Tough Year
Lendlease has warned of a challenging year to come as COVID-19 puts a damper on development and construction globally.
The Australian developer is planning a restructuring to strip out A$160 million ($117.4 million) in costs each year and put it in a better position to respond to an upturn it expects from 2023. Read more>>
New World’s Pavilia Farm Project Sees First Cancellations
New World Development’s Pavilia Farm III project, where two blocks are earmarked for demolition, has seen its first cancellations.
Deals for three flats in the affected blocks of Hong Kong’s best-selling new residential project last year were terminated despite adequate compensation offered by the developer. Some market observers fear further cancellations because of uncertainties over the project. Read more>>
Shanghai to Build 220,000 Rental Homes in Next Five Years
Shanghai, the commercial and financial capital of mainland China, plans to build 220,000 rental homes by 2025 as city officials go all-out to meet burgeoning demand and tame soaring house prices.
The figure represents an increase of more than 45 percent from the number of rental units built in the last five years in one of the country’s least affordable cities to rent or buy a home. Read more>>
JLL to Acquire Artificial Intelligence Company Skyline
JLL announced an agreement to acquire Skyline AI, a leading artificial intelligence company that uses proprietary machine learning models to gain a competitive advantage in the origination and analysis of real estate opportunities.
The transaction is expected to close shortly, following completion of customary closing conditions, the global property consultancy said. Read more>>
WeWork Narrows Losses Amid Hybrid Working Shift
Office sharing startup WeWork narrowed its losses in the second quarter, with companies increasingly turning to hybrid working strategies after the pandemic.
Net loss slipped to $922.5 million in the three months to June, down from $1.1 billion in the same quarter last year. Revenue for the period was $593 million, down from $882 million a year ago. Read more>>
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