Evergrande boss Xu Jiayin has upped his stake in Vanke to 7%
China’s latest round of market data has been released, showing average home prices grew in fewer cities in July after housing sales restrictions were adopted in more cities. Also in the news, Evergrande continues its pursuit of a larger stake in Vanke, raising its stake in its embattled rival to seven percent, and in Hong Kong the city’s biggest developer is now offering interest free loans if you will just buy a home. Read on for all these stories and more.
China Home Price Recovery Slows as Restrictions Bite
Chinese home prices gained in fewer cities as local governments joined some of the nation’s largest hubs in imposing residential property curbs to quell soaring real estate values.
New-home prices excluding government-subsidized housing gained in 51 cities last month, from 55 in June, among the 70 the government tracks, the National Bureau of Statistics said Thursday. Prices dropped in more cities for a fourth consecutive month, declining in 16, compared with 10 a month earlier. They were unchanged in three. Read more>>
Evergrande Ups Vanke Stake to 7% in Ownership Struggle
A battle for control of China’s largest home builder heated up after the country’s No.2 player raised its stake in China Vanke (2202.HK) to nearly 7 percent, sending Vanke stock higher with investors and analysts betting more share raids are in store.
The move by highly indebted but ambitious China Evergrande Group (3333.HK) comes amid a rare public Chinese boardroom spat. Vanke is already fending off a potential bid from its biggest investor, financial firm Baoneng Group, which has built up a 25 percent stake despite the developer’s protests. Read more>>
Sung Hung Kai Offers Interest Free Loans as Home Sales Slip
Sun Hung Kai Properties has released its latest residential project in Yuen Long not only at a lower-than-expected price but it is also providing potential buyers with interest-free loans as an inducement, underscoring the eagerness of developers to speed up sales amid abundant supply in the area.
The developer released the price list of the first batch of 226 units at Grand Yoho with prices as low as HK$9,931 per square foot after factoring in a maximum 18.25 per cent discount, the company said. Read more>>
Longfor Properties Raises 2016 Target by 21% After Strong 1H
Longfor Properties, one of the top 10 private developers in China, has raised its 2016 sales target by 21 per cent to 75 billion yuan after posted a 7.7 per cent rise in first-half core earnings.
The company saw its core net profit, excluding minority interest and revaluation gains, climb to 2.4 billion yuan in the first six months, thanks to improved sales price. Read more>>
SOHO China Says Rental Income Rose 60% in 2016
Net profit at Soho China, the Beijing-headquartered real estate developer led by billionaire power couple Pan Shiyi and Zhang Xin, soared in the first half of 2016 amid rising revenue and debt prepayment.
Revenue totaled 727 million yuan, or $110 million, an increase of 85% compared with the same period of 2015. Of that, rental income was 700 million yuan, a gain of 60% year-on-year. As of June 30, Soho had a 85% occupancy rate for its investment properties. Among those, Soho 3Q is the largest shared office space in China with 16 Soho 3Q centers in Beijing and Shanghai with 13,603 seats, Soho said. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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