China’s new home prices grew at their slowest pace in nine months in January
Tighter credit and stricter policy enforcement continued to slow down price growth in China’s real estate market according to the latest government figures, which put reports of average prices nationwide growing by their slowest pace in nine months at the top of Mingtiandi’s daily news roundup. Hong Kong’s market is also generating headlines with a leading agency reporting signs of transaction volumes recovering and some recovery may be needed for a stalled Los Angeles project belonging to a Beijing-based developer. Read on for all these stories and more.
China Home Price Growth Slows to 9-Month Low
Growth in China’s home prices eased to a nine-month low in January in a further sign that the slowing economy is weighing on consumer confidence. Weakening price gains point to strains on China’s massive property sector and raise questions over whether more cities will risk loosening restrictions on home buyers.
Average new home prices in 70 major cities rose 0.6 percent in January, the weakest pace since April 2018, according to Reuters calculations based on data from the National Bureau of Statistics (NBS) on Friday. Read more>>
Hong Kong Home Sales Quicken in Signs of Rebound
The outlook for Hong Kong’s property market, the world’s least affordable, has started to firm with some analysts predicting prices could rise as much as 10 percent this year after only a short-lived correction.
Pent-up demand, expectations of slower interest rate rises and optimism Beijing and Washington will soon hammer out a trade deal, have combined to boost sales after prices drifted lower from mid-2018. Total transaction volumes jumped 120 percent in January to 4,355 sales from 1,963 in December, data from realtor Centaline showed. Read more>>
Construction Still Stalled on Oceanwide Plaza in LA
Construction of Oceanwide Plaza, a $1-billion real estate development in downtown Los Angeles, remains stalled amid questions about whether the Beijing-based developer can find the funds to complete it.
Work on the mixed-use complex near Staples Center stopped late last month, bringing widespread attention to the rare sight of a three-skyscraper construction site devoid of activity when it should be swarming with hard-hatted laborers. Read more>>
Baring PE, CPPIB School Joint Venture Buys into India Market
Hong Kong-based school chain Nord Anglia Education Inc. has entered India by acquiring People Combine Education India Initiatives Ltd’s schools under the Oakridge International brand.
Nord Anglia, owned by Canada Pension Plan Investment Board (CPPIB) and Baring Private Equity Asia, has acquired five Oakbridge K-12 schools for kindergarten to grade 12 students. Read more>>
CEO of SG’s Razer Announces High Tech Real Estate Venture
Razer chief executive Tan Min-Liang is poised to shake up traditional real estate development with a new startup he backed that aims to incorporate artificial intelligence, the Internet of things, and other next-generation technologies in real estate projects.
Named Echo Base, the Singapore-based digital real estate startup was announced on Friday as Razer, a gaming peripherals company, marked the ground breaking of its new South-east Asia headquarters in one-north, which is expected to be ready by the middle of next year. Read more>>
New World Signs Up Bank of China for HK Blockchain Platform
Yesterday New World Development Company (NWD) announced a blockchain platform which it developed in collaboration with Hong Kong Applied Science and Technology Research Institute (ASTRI). The Hong Kong arm of state-owned Bank of China (BOCHK) is the first bank to participate. The network will launch in the second quarter of 2019.
“Traditionally, buyers, real estate developers, banks and law firms all work separately – until now, there has been no one-stop platform to connect all parties,” said Adrian Cheng, Vice-chairman and General Manager of NWD. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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