In today’s roundup of regional news headlines, Chinese authorities roll out fresh measures to encourage homebuying, with Shanghai officials reportedly considering a toned-down stimulus package for the megacity. Also on the list are Country Garden’s disposal of a project stake and a profit warning from Guangzhou R&F Properties.
China Unveils Raft of Homebuying Rules in Bid to Prop Up Slumping Market
Chinese authorities are easing mortgage rules and extending tax refunds for homebuyers in a bid to prop up the faltering property market and boost the economy.
Households that do not have a house registered under any one member of a family can be counted as “first-time homebuyers” and enjoy cheaper mortgage rates, according to a statement issued Friday by the Ministry of Housing and Urban-Rural Development, the People’s Bank of China, and the National Administration of Financial Regulation and reported by the Xinhua News Agency. They can also apply for lower down payments. Read more>>
Shanghai to Devise Its Own Easing Measures to Keep Housing Prices in Check
Shanghai is unlikely to take drastic action to revive the city’s stuttering property sector, even as Chinese policymakers on Friday announced several measures to prop up the vital economic pillar, according to people familiar with the matter.
City officials fear rampant fund flows into the local housing market if the central government’s measures are fully implemented, so the Shanghai government is only likely to lower purchase and capital gains taxes on home transactions, three sources with knowledge of the local government’s thinking said. Read more>>
Country Garden Sells Its Stake in Guangzhou JV to Partner COLI
Country Garden on Friday announced plans to sell its 26.67 percent stake in the troubled developer’s Guangzhou joint venture to its JV partner, state-backed China Overseas Land & Investment, for RMB 1.29 billion ($180 million).
The venture has been developing a mixed commercial and residential complex called Guangzhou Asian Games City. Read more>>
Guangzhou R&F Warns of $670M H1 Loss
Guangzhou R&F Properties on Friday said it expects to record a first-half loss of RMB 4.9 billion ($670 million), narrowing by RMB 1.9 billion its year-earlier loss.
The expected net loss is mainly attributable to the decrease in recognised sales resulting from challenging operating conditions in the property sector and financial conditions that have affected market sentiment towards China property, as well as foreign exchange loss, the developer said. Read more>>
CK Asset, Henderson Land Drawing Out Homebuyers With Discounts
Homebuyers in Hong Kong have continued to flock to projects that offer them the best value for money, with CK Asset Holdings — the flagship developer of billionaire Li Ka-shing that has been offering huge discounts — selling almost all units in the latest batch of its Coastline project on Sunday.
As of 6.30pm on Sunday, the project in Yau Tong had sold 39 units out of the 41 on offer at Coastline I and Coastline II, according to property agents. Read more>>
Growth in China’s New Home Prices Likely Flat in 2023: Economists
China’s new home prices will likely show no growth this year, according to a Reuters poll, highlighting the intense pressure in the crisis-hit property sector that has put a choke-hold on the economy and left policymakers in a scramble to restore confidence.
The expected 0 percent year-on-year growth in home prices contrasts with a 1.4 percent gain tipped in the previous forecast in May, a Reuters poll of 12 economists conducted during 16-25 August showed. Read more>>
Malaysia’s Banks Have Limited Exposure to Country Garden, Says Central Bank
Malaysia’s central bank said Monday that banks incorporated in the Southeast Asian nation face limited financial stability risk arising from exposure to China’s largest developer, Country Garden.
Such banks’ exposure to Country Garden Real Estate, the developer’s wholly owned subsidiary in Malaysia, amounted to less than 0.1 percent of total banking system loans and bonds as of June, the central bank told Reuters in an email. Read more>>
Vietnam Seeks to Kick-Start Property Recovery After Crackdowns
Vietnam’s leadership is under pressure to introduce reforms to reinvigorate the property sector after leverage restrictions designed to limit risks to the economy and an anti-graft crackdown last year hobbled developers and sent bond prices tumbling.
International bonds issued by the country’s largest developers have plunged to trade at cents on the dollar after the government introduced new reporting requirements, tightened access to credit and made high-profile arrests of property tycoons on charges including bond market fraud. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply