China homebuyer demand still seems bigger than the market
Mainland authorities have clamped down on credit, punished fake divorcees and chased down naughty brokers in their campaign to stamp out housing inflation, but home prices just rose by their fastest pace in twenty months. While homebuyers still want condos, villas or even closets, government policies may have had more of an impact on developers, as new investment in the sector dipped to 2018 lows. Outside of China’s real estate circus, warehouse builder ESR is ready to open its first three India projects and more fun could be on the way in Malaysia. Read on for all these stories and more.
China Home Price Index Jumped 1% in June
China’s new home prices accelerated to their fastest pace in almost two years in June, with buyer demand in bigger cities resilient in the face of fresh curbs against speculation, a sign more restrictions may be needed.
Average new home prices in China’s 70 major cities rose 1 percent in June from a month earlier, higher than the previous month’s reading of 0.7 percent, according to Reuters calculations based on an official survey on Tuesday. The monthly growth was the highest since October 2016, Reuters calculations showed, and marks 38 straight months of price gains. Read more>>
Mainland Property Investment Slumps to 2018 Low
China’s property investment posted its weakest growth in six months in June as developers faced fresh curbs and tighter funding conditions, with sales also slowing, in a sign one of the economy’s key drivers was losing steam.
Growth in real estate investment, which mainly focuses on residential but also includes commercial and office space, cooled to 8.4 percent in June year-on-year, compared with a 9.8 percent rise in May, according to Reuters calculations based on data from the National Bureau of Statistics (NBS) released on Monday. While analysts say the pace of investment remains robust, it was nonetheless the slowest pace of growth since December 2017. Read more>>
ESR to Roll Out First Three India Parks in August
Warburg Pincus-backed logistics developer e-Shang Redwood (ESR) will make its India debut with three industrial parks next month to tap into the rising corporate demand for world-class warehousing facilities.
Four more projects will be up and running by the year-end, giving a tough competition to logistics and warehousing players in the largely unorganised industry. Read more>>
Anbang Exploring Sale of Hexie Health Insurance Subsidiary
Anbang Insurance Group Co. is weighing a sale of its Hexie Health Insurance Co. unit as the troubled Chinese firm reviews its assets for possible divestment, according to people familiar with the matter.
The insurer is in discussions with financial advisers about a possible disposal of the unit after receiving interest, the people said, asking not to be identified because the matter is private. The health insurance firm could attract Chinese insurers as well as private equity funds, one of the people said. Read more>>
Analysts Say China Property Sell-Off Oversold
China property bulls say that bearish investors who sent some developers’ bonds to record lows and their stocks to near-crisis levels have it all wrong.
JPMorgan Chase & Co. and Nomura Holdings Inc. see a share-price rebound looming and Janus Henderson Group PLC said firms’ valuations are out of line with fundamentals. Read more>>
Dark Clouds Gather Over CCCC Malaysian JV After Rail Project Shut Down
THE relationship between China Communications Construction Co Ltd (CCCC) and its joint-venture (JV) partner George Kent (M) Bhd is understood to be fraying at the seams because of issues. The two companies have a joint venture called CCCC-George Kent JV on a 51:49 basis.
The cause of the problems is understood to be the RM1 billion systems work package for the Sungai Buloh-Serdang-Putrajaya mass rapid transit line (MRT2), which the two companies had bagged in August 2016. Read more>>
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