China’s government leaders have just finalised plans and priorities for the coming year, and high on the list is taming the country’s housing bubble. This approach makes a major departure from the agenda set last year, when reviving the housing industry was on the lips of the cadre elite. Also in the real estate headlines, major transactions in Sydney, Melbourne and KL, and Vanke experiments with in-home care for the elderly as China readies for a senior housing boom. Read on for all these stories and more.
China will promote the stable and healthy development of the real estate market in 2017, said a statement issued Friday after the Central Economic Work Conference.
The country will establish a market-oriented and long-term mechanism that can curb a real estate bubble and prevent erratic fluctuations, the statement said. Read more>>
The Charter Hall Office Trust has sold off two commercial properties for more than $234 million in total as it works through its unlisted portfolio. The two properties – Avaya House Building in Sydney’s Macquarie Park and a St Kilda office block in Melbourne – were each sold to offshore players.
In Sydney, Avaya House at 123 Epping Road was sold for $118 million on a 6.1 per cent yield to a joint venture between the B1 Group and Shimao. In Melbourne, the 11-storey tower at 5 Queens Road was sold for $116.3 million on a yield of 5.6 per cent to Singaporean developer Tong Eng Group. Read more>>
The Kumpulan Wang Persaraan (KWAP) bought the Menara AIA Cap Square from Germany’s Union Investment Real Estate GmbH (UIRE). JLL Malaysia, which advised UIRE on the deal, said on Friday the 41-storey Grade A office building comprises 601,796 square feet of net lettable space. Current tenants include insurance and financial companies such as AIA and Citibank.
This was the the largest office building sale in Malaysia in 2016, according to JLL Malaysia. However, the amount transacted was not disclosed. Read more>>
Hong Kong homebuyers can wave goodbye to negative real interest rates after the US Federal Reserve hiked interest rates by 25 basis points, with analysts expecting more increases to come.
While a small rise in the interest rate will not make mortgage rates in Hong Kong suddenly become unaffordable, home prices will see downward pressure when the city’s interest rate cycle is paving the way to positive from negative, according to property analysts. Read more>>
SUNeVision, a subsidiary of Sun Hung Kai Properties Limited (SHKP), has announced the topping out its MEGA Plus data centre in Tseung Kwan O, Hong Kong.
The 470,000 gross square feet Tier-4 ready data centre is set to be fully operational in mid next year. It will serve multinational corporations and local corporate customers, including international banking and finance institutions, global and telecom operators, cloud service providers to small and medium enterprises (SMEs). Read more>>
A parcel of residential land at the site of Hong Kong’s former Kai Tak airport has emerged as the most sought after in the area among developers, shrugging off the impact of the long-awaited interest rate increase by the US Federal and Hong Kong Monetary Authority.
The Lands Department said it had received 21 bids for the plot, adjacent to a Kai Tak site that sold for a record HK$8.84 billion in November, which could yield 397,967 square feet of gross floor area. Read more>>
HANGZHOU Vanke, a subsidiary of Vanke Group, one of the biggest real estate developers in China, signed contracts with 12 local Ningbo communities last month to bring government-supported home-based senior care services to local senior citizens. Participating communities can be found in the central districts of Jiangdong and Haishu.
Providing medical services to elderly people in their own homes is seen as a method to deal with the disparity between China’s growing senior population and the lack of specialized elder care institutions. Read more>>
Kerzner International Holdings Ltd., the parent of the Atlantis brand of all-inclusive resorts, confirmed Thursday that the brand’s first U.S. property will open on Oahu and will have 800 rooms.
The property, which will be developed by China-based Oceanwide Holdings Group, is part of the Ko Olina resort district on the island’s west side. The resort, which will sit on 26 acres, will also include 524 residences as well as a waterpark and an aquarium. Kerzner International declined to give an estimated opening date. Read more>>
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