Chinese Outbound Investment Hits 4-Year Low and More Asia Real Estate Headlines

Chinese investors were just about to take over the real estate world, until 2017 ran them down like a they were Democratic presidential candidates who operated their own email servers. Also in the property news today, more mainland developers blaze new debt trails – which most likely shouldn’t be a problem as far as we know, and co-living might make money. Just read on for all the details.

Chinese Outbound Investment Hits 4-Year Low

Chinese investment in foreign real estate hit its lowest in more than four years in the third quarter, highlighting how tighter capital controls are reshaping global asset markets.

Chinese insurers, banks and private-equity groups have emerged in recent years as among the most important bidders for prime office buildings and luxury hotels in London, New York, Sydney and other major cities. Read more>>

Mainland Developers Boldly Go to New ABS Frontiers

Chinese developers such as China Vanke (2202.HK) and Country Garden (2007.HK) are increasingly turning to the securitization market as an alternative fund-raising channel as the onshore bond market remains mostly inaccessible.

Property companies are in particular stepping up the securitization of receivables from property sales, providing them with funds to develop other projects. Read more>>

Fosun Rejigs Property Units in Sale of 26 Subsidiaries

Shares of Chinese conglomerate Fosun International rose on Tuesday after it said it would sell its stakes in 26 companies, mainly property development and management firms, to affiliate Shanghai Yuyuan for 24.23 billion yuan (US$3.65 billion) in an amended, all-share transaction it said was aimed at better allocating resources.

Fosun closed up 6.81 per cent at HK$18.20 in Hong Kong on Tuesday. The benchmark Hang Seng Index gained 1.91 per cent to 29,818. In Shanghai, shares of Shanghai Yuyuan gained 0.65 per cent to 10.86 yuan, outperforming the benchmark Shanghai Composite Index’s 0.53 per cent rise to 3,410.5. Read more>>

Shenzhen Exchange Investigating Just How Broke LeEco May Be

The Shenzhen Stock Exchange has sent a letter to LeEco to ask if the company has the ability to repay the loans that it took from Sunac China Holdings (1918).

Sunac China, backed by billionaire property magnate Sun Hongbin, has extended a total of 1.79 billion yuan (HK$2.11 billion) to LeEco. The stock exchange has asked LeEco to reveal to investors the risks if the loans are not paid. Read more>>

Hong Kong Budget Hotels Turn into Co-Living Warrens

Hong Kong budget hotels in non-core areas are keen to join other investors to convert their underperforming properties into co-living spaces, as it provides a cheaper alternative for millennials priced out of the world’s most expensive housing market.

And the situation is only likely to get worse, with property prices in the city expected to increase by at least 15 per cent in the next two and a half years, according to property consultants JLL. Rents too have surged for 18 straight months, making it impossible to get a flat for under HK$10,000 a month. Read more>>

Mainland Developers Score 20% Rent Premium on Co-Living Projects

Yuppies with the taste for communal living in Beijing are being spoiled for choice as an increasing number of private firms move into this latest strand of residential leasing, thanks to backing from the government.

The latest in a long line of operators now getting involved in the trend is Longfor Properties, which is bringing its “Guanyu” long-term apartment leasing concept to the market. Read more>>

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