Mainland China’s housing market leads Mingtiandi’s headline roundup again today as research by Citigroup finds that homebuyers across Asia’s largest economy have begun withholding payments on purchases in delayed projects. A Hong Kong developer also has some worrying news as the builder of a Cheung Sha Wan project says 21 deals have fallen through and Singapore sees more assets up for sale as the market continues to boom.
Buyers of Homes in 22 Chinese Cities Halt Mortgage Payments
Across China, homebuyers are refusing to pay mortgages as property developers fail to make progress on construction projects, escalating the country’s real estate crisis and risks of bad debt for banks.
Buyers of 35 projects across 22 cities have decided to stop paying mortgages as of 12 Jul due to project delays and a drop in real estate prices, Citigroup analysts led by Griffin Chan wrote in a research report distributed on Wednesday (Jul 13). Read more>>
Hong Kong Developer Says 21 Buyers Walk Away $1.1M in Deposits
The developer of The Vertex, a housing development in Hong Kong’s Cheung Sha Wan district, terminated 21 flat purchases on Tuesday as the would-be buyers failed to complete their transactions, forfeiting a total of HK$8.83 million (US$1.1 million) in deposits.
The number of terminated deals in a single day was among the highest in memory, and the Hong Kong housing market may see more abandoned purchases given an outlook that calls for falling prices amid rising mortgage rates, a broker said. Read more>>
China Developer Bonds Fall on Lockdown Fears
Dollar bonds of Chinese developers fell across the board on Tuesday, with stress spreading from junk-rated names to investment-grade peers including China Vanke amid renewed concerns about more Covid lockdowns in the country.
Notes from Vanke, the country’s second-largest builder by contracted sales fell as much as 5 cents on the dollar, according to prices compiled by Bloomberg, on track for their biggest declines since March 2020. Investment-grade dollar bonds from peers Longfor Group Holdings and Sino-Ocean Group Holding were also poised to set record lows. Declines in high-yield notes were paced by Country Garden Holdings, China’s largest developer. Read more>>
Mainland Developers See Offshore Bond Sales Fall 91% in 2022
The amount of foreign bonds issued by Chinese real estate companies in the first half plummeted 91.1 percent from the same period last year, after a string of high-profile defaults eroded overseas investor confidence, the Securities Daily reported today, citing data from the China Index Academy.
Chinese developers raised CNY16.9 billion from the sale of offshore bonds in the six months ended June 30, the report said. No new foreign bonds were issued at all in February and May. And the total raised from non-bank financial institutions slumped 56.5 percent in the first half year on year to RMB 482.5 billion ($71.8 billion), it added. Read more>>
19 Singapore Townhouses on the Market for $112M
A set of 19 townhouses in the residential block of Singapore’s Thomson Plaza have been put up for bulk sale via expression of interest at a price of S$158 million ($112 million).
The townhouse units in the development, known as Marigold Mews, have a strata area ranging from 2,411 square feet to 4,133 square feet, or approximately 60,805 square feet in total, said sole marketing agent Brilliance Capital in a statement. Read more>>
Singapore Industrial Building on the Market for $22.7M
Singapore’s CK Holdings is putting its light industrial building in the city-state’s Tampines area up for sale by expression of interest at an asking price of S$32 million ($22.7 million), said a statement.
Sitting on a site of 51,724 square feet, the 6-storey building has a gross floor area of 128,518 square feet, and 32 years left on its lease. It said in the statement that the buyer will have naming rights to the building as well. Among its features, the building has 2 loading and unloading areas and separate entrance and exit gates, making for smooth traffic flow in the grounds. Read more>>
APAC Hotel Investment Rose 33% in First Half of 2022
Hotel investment in Asia-Pacific continued to show signs of recovery, totalling $6.8 billion in the first half of 2022.
Singapore, particularly, was one of the countries which bounced back the quickest as it was one of the first to lift most travel restrictions in the region, according to real estate professional services firm JLL’s report released on Wednesday (Jul 13). Read more>>
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