China Home Sales Plunge 90% in Early Feb and More Asia Real Estate Headlines

Mainland China’s beleaguered housing market leads the way in Mingtiandi’s roundup of Asia real estate headlines today as the market braces for worse to come after home sales plunged 90 percent in the first week of February compared with the same month last year.

In other news around the region, a Singapore media kingpin has picked its banking team for a proposed $300 million IPO, while a developer from the same city posts a 90 percent slide in second quarter profits. Elsewhere, insurance companies in Korea are said to be selling off property assets as their profits take a hit.

Mainland China Home Sales Plunge 90% as Buyers Stay Home

Home sales in China have been dealt a huge blow by the spreading coronavirus with figures showing transactions plunged in the first week of February.

New apartment sales dropped 90 percent from the same period of 2019, according to preliminary data on 36 cities compiled by China Merchants Securities. Sales of existing homes plummeted 91 percent in eight cities where data is available. Read more>>

Singapore Press Picks Banks for Student Housing REIT IPO

Singapore Press Holdings has selected advisers to help with a planned listing of a real estate investment trust backed by student housing that could raise at least $300 million, according to people familiar with the matter.

The country’s biggest media group is working with DBS Group Holdings, HSBC Holdings Plc and Oversea-Chinese Banking on the potential sale of trust units backed by university student accommodation in the UK, according to the people. Read more>>

Oxley Holdings Posts 90% Slide in Q2 Profit

Oxley Holdings saw its second-quarter earnings decimated by a sharp decrease in other gains, on the absence of a fair-value gain as an investment property in Dublin was revalued, according to unaudited results released on Monday.

The group’s Q2 net profit plummeted by 89.9 per cent year-on-year to S$3.56 million ($2.56 million) for the three months to 31 December 2019. Read more>>

Asian Investor Snaps Up Warsaw Logistics Park

Poland Panattoni Europe has sold five logistics parks with a combined 280,000 square metre (3 million square feet) to an undisclosed Asian investor represented by Savills Investment Management.

The parks include Panattoni Park Poznan IV (86,500 square metres), Panattoni Park Szczecin II (70,000 square metres), Panattoni Park Warsaw North (54,000 square metres), Panattoni Park Warsaw South (38,000 square metres) and Panattoni Park Ruda Śląska I (33,500 square metres). Read more>>

BHG Retail REIT Close Stores at 2 China Malls to Contain Virus Spread

BHG Retail Real Estate Investment Trust has temporarily closed all stores except for the supermarkets and certain food and beverage outlets providing delivery services at two of its malls in China.

This is in compliance with the Hefei authorities’ notice on 6 February in order to contain the spread of the novel coronavirus, the manager of the pure-play China retail real estate investment trust said. Read more>>

Ayala Gears Up to Raise $300M Through Philippines’ First REIT

Philippine conglomerate Ayala has applied to list the country’s first real estate investment trust, with the float expected to raise roughly 15 billion pesos ($294 million).

Ayala Land, the group’s property arm, will offer 478.64 million new and existing shares in the REIT, according to filings submitted Friday to the Philippine Securities and Exchange Commission. Each share will be priced at 30.05 pesos ($0.59), though no date has been set. Read more>>

Korean Insurers Offloading Property Assets to Deal with Falling Profits

Insurers are selling real estate to enhance financial soundness ahead of the soon-to-be implemented IFRS 17 accounting standards, which will take effect in 2022.

The move comes amid mounting concerns over the international accounting framework, as it urges insurers here to secure more capital, while reducing their debt ratio, according to industry officials. Read more>>

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