Property investment in China fell in 2022 for the first time since records began (Getty Images)
In today’s roundup of regional news headlines, China reports an exceedingly rare decline in property investment for the whole of 2022, and Singapore’s residential rents are seen continuing their surge this year.
China Property Investment Falls for the First Time on Record
China’s property investment fell 10 percent year-on-year in 2022, the first decline since records began in 1999, compared with a decline of 9.8 percent in the first 11 months of the year, official data showed on Tuesday.
Property sales by floor area dropped 24.3 percent in 2022 from the same period a year earlier, the most since the data became available in 1992, compared with a fall of 23.3 percent during January-November, according to data from the National Bureau of Statistics. Read more>>
Singapore Private Home Rents Set to Climb 10-15% This Year: Bloomberg
A breakneck surge in private residential rents hammered Singapore’s tenants with increases of about 21 percent in the first nine months of 2022, and the pain looks set to continue this year.
Despite the pace slowing, Bloomberg Intelligence analysts predict that rents will rise by another 10 to 15 percent in 2023, driven by the country’s continued economic recovery, as well as resilient employment and household income. Read more>>
Gaw, CapitaLand, Brookfield Eye Stake in Indian Solar Firm CleanMax
Hong Kong-based Gaw Capital Partners and Singapore’s CapitaLand Investment, among others, are looking at a majority stake in Indian rooftop solar power producer CleanMax Enviro Energy Solutions for an enterprise value around $550 million, said two people in the know.
Other investors participating in the sale process run by Rothschild and Co include Brookfield Asset Management, National Investment and Infrastructure Fund and US-based I Squared Capital. The deal structure involves a majority buyout and raising fresh capital. The companies have submitted non-binding offers for the deal. Read more>>
Evergrande Is Said to Propose Two Offshore-Debt Restructuring Options
China Evergrande, the developer at the heart of the nation’s property crisis, has been discussing a restructuring proposal with creditors that includes two options for extending payment deadlines on unsecured offshore debt, people familiar with the matter said.
One of the options would entail instalment payments on principal of such debt with the time for total repayment reaching as long as 12 years, according to the people, who asked not to be identified as the matter is private. Read more>>
China Bad-Debt Firms Plan Refinancing Support of Select Developers
Chinese financial regulators and the nation’s biggest bad-debt management companies plan to offer as much as RMB 160 billion ($24 billion) of refinancing support to high-quality developers in the first quarter, according to people familiar with the matter.
Under the plan announced last Friday with few details, the People’s Bank of China will channel RMB 80 billion in loans through China Huarong Asset Management and its peers to selected developers at an annual rate of 1.75 percent, the people said, asking not to be identified discussing private matters. The distressed-debt firms are encouraged to match the amount from their own coffers, the people added. Read more>>
JP Morgan Sees Sustained Rally in Chinese Equities, Upgrades Property Bonds
Chinese stocks are likely to continue rallying as the recent market tailwinds drive a revaluation, JP Morgan Private Bank said. The credit market is also likely to get a leg up after the reopening, while the outlook for the yuan is less rosy, it added.
Recent catalysts, including the end of the zero-COVID policy, supportive property measures and easing geopolitical tensions, have provided more upsides for equities even after rapid gains over the past two months, analysts including Alex Wolf said in a note to clients. Read more>>
Philippine Office REITs Get a Boost as Spotty Internet Limits Work-From-Home
Poorer internet infrastructure in the Philippines is proving to be a boon for office landlords in the archipelago.
While managers of some REITs with office assets are fretting over low physical occupancy rates due to work-from-home trends, market watchers say employees in the Philippines are returning to the office at a healthy rate. Read more>>
Godrej Properties Bags Deal to Redevelop Colony in Mumbai’s Matunga
Godrej Properties has bagged a deal to undertake the redevelopment of Agarwal Nagar, a residential colony spread over 1.2 acres (0.5 hectares) on Babasaheb Ambedkar Road in Mumbai’s Matunga area.
The redevelopment project will comprise the construction of two 30-floor towers along with lifestyle amenities such as swimming pool, gymnasium, banquet hall, clubhouse, and futsal and basketball courts. Read more>>
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