China Evergrande’s recent episode involving a disputed plea for government assistance may have spooked the company’s creditors, as reports circulate this week that some of the developer’s biggest lenders are cutting back on loans and other credit to the chronically over-leveraged company.
Also in the news, Singapore’s housing sector continues to resist pandemic downdrafts and India office leasing bounces back during the third quarter.
Several of China Evergrande’s (3333) largest lenders are reducing their exposure to the debt-laden developer, Bloomberg reports.
China Minsheng Banking Corporation (1988), Evergrande’s biggest creditor, told branches to avoid new unsecured loans to the developer and reduce overall financing, including through the bond market, people familiar with the matter said. The move comes amid increased scrutiny from regulators, who have urged Minsheng Bank to improve management of its Evergrande risks after some of the bank’s short-term loans lacked sufficient collateral, one of the people said. Read more>>
The prices of resale condominiums held firm amid robust demand in September, with more than 1,000 units sold for three straight months.
An estimated 1,286 resale condominiums changed hands last month – up 0.4 per cent from August and 62.8 per cent higher than September last year, according to flash figures from real estate portal SRX Property on Tuesday (Oct 13). Read more>>
A portfolio of 27 strata office units occupying four levels of 20 Cecil Street in the heart of Singapore’s central business district has been offered for sale.
The indicative price for the entire portfolio is S$100 million, which translates to an average price of S$3,143 per square foot based on a total strata area of about 31,979 square feet (sq ft). The strata area of each unit ranges from 786 sq ft to 2,303 sq ft. Read more>>
Commercial office absorption is picking up across the top six Indian cities, with Q3 2020 gross absorption at 6.5 million square feet (msf), up 58% QOQ. The rise in leasing activity signals that occupiers are returning to the drawing board to close ongoing deals that were stalled earlier.
However, during January-September 2020, gross absorption fell 46% YOY to 22.5 msf due to the prolonged lockdown in the country. Between January-September 2020, Bengaluru accounted for 30% of the total gross absorption, followed by Delhi-NCR and Hyderabad with about 17% share each. Read more>>
Hong Kong developers, looking for a strong finish to the year on the back of new project launches, could see their hopes dashed, as analysts fear the market may be unable to fully absorb the new supply amid the possibility of a fourth wave of coronavirus outbreak that could pummel the city’s economy further.
Up to 11,578 new homes in 38 projects could be launched this quarter, according to developers’ websites and Lands Department reports of presale consent. Read more>>
Buyers of commercial and industrial property who have been unable to meet certain contractual obligations due to the pandemic now have temporary relief from legal and enforcement action.
The Covid-19 (Temporary Measures) Act has been expanded to cover option to purchase (OTP) and sales and purchase agreements between developers and buyers of commercial and industrial sites. Read more>>
Home buying sentiment in Macau, the world’s largest gaming hub, was expected to be subdued after tourist arrivals failed to meet expectations during the “golden week” holiday last week.
Residential property transactions dropped 23 per cent year on year to 4,169 deals in the first eight months of the year, according to data from Macau’s Financial Services Bureau. Read more>>