In today’s roundup of regional news headlines, Chinese officials reportedly prepare a rescue fund for debt-stricken mainland developers, a Singapore residential project nearly sells out on its first day of launch, and more Hong Kong homeowners are dumping properties at a loss amid a population exodus and rising interest rates.
China will set up a real estate fund to help developers resolve a crippling debt crisis, aiming for a war chest of up to RMB 300 billion ($44.4 billion), according to a state bank official with direct knowledge of the matter.
The size of the fund would initially be set at RMB 80 billion through support from China Construction Bank and the People’s Bank of China, the person, who declined to be identified due to the sensitivity of the matter, told Reuters. Read more>>
AMO Residence, the year’s first major new launch in Singapore’s Outside Central Region, was met with sizzling demand as it sold nearly all its 372 units on the first day of its launch on Saturday.
The 99-year-leasehold private residential development, a joint venture of UOL Group, Singapore Land Group and Kheng Leong Company, has sold more than 98 percent of its units and was left with seven unsold ones. Read more>>
A freehold seafront residential site at 81 and 83 Meyer Road in Singapore has been launched for collective sale at a reserve price of S$420 million ($303 million).
This works out to a land rate of S$1,720 per square foot per plot ratio after factoring in a development charge of S$78.2 million and a 7 percent bonus floor area. Read more>>
Hong Kong’s housing market is seeing signs of a slump as more owners sell at a loss amid a wave of emigration, rising interest rates and a stock market slump, while developers’ inventory levels rose to a record high in June as they rushed to launch new projects.
The first six months saw more loss-making transactions compared with last year, except in February, according to data compiled by Ricacorp Properties from official records. The number of loss-making transactions surpassed 100 from March to June. Read more>>
US-based industrial developer Panattoni will invest $200 million (INR 1,597 crore) in India to build four industrial and logistics parks across major cities.
Panattoni India Development is headquartered in Bengaluru and marks the US company’s Asian debut as it seeks to tap rising demand from the third-party logistics, e-commerce and manufacturing sectors. Read more>>
Chinese developer Gemdale has received $94.3 million in construction financing for an apartment community in the city of Pleasant Hill in California’s Bay Area.
Located at 85 Cleaveland Road, the four-storey property will feature 189 apartments, a fitness centre, communal lounges, clubroom, outdoor courtyard with lounge seating, rooftop and pool deck, co-working lounge, outdoor meeting rooms and fireplaces. Read more>>
China’s deepening property bust is sending shock waves through the nation’s 400-million-strong middle class, upending the belief that real estate is a surefire way to build wealth.
Now, as property developments stall across the country and house prices fall, many Chinese homeowners are slashing spending, postponing marriage and other life decisions, and, in a growing number of cases, withholding mortgage payments on unfinished homes. Read more>>
Chinese property stocks and dollar bonds rallied Monday, as a reported move by Beijing to establish a fund to support developers fuelled optimism about a turnaround for the struggling sector.
A Bloomberg Intelligence index of the country’s real estate firms jumped as much as 3.4 percent, the most in a week. China’s high-yield dollar notes, predominantly issued by developers, rose at least 1 cent on the dollar, according to credit traders, with a Bloomberg gauge tracking the sector set to gain for a fourth straight session. Read more>>