
Chip Eng Seng holds a one-fifth interest in the 8 Shenton Way redevelopment project (Image: SOM)
In today’s roundup of regional news headlines, Gordon and Celine Tang delay the closing date of their offer for Singapore’s Chip Eng Seng to mid-February, and more Chinese cities lower mortgage rates to encourage first-time homebuyers.
Tangs Extend Closing Date of Chip Eng Seng Offer to 16 February
Property power couple Gordon and Celine Tang have extended the closing date of their take-private offer for developer Chip Eng Seng to 16 February.
Before Thursday’s announcement, shareholders had until 2 February to consider Tang Dynasty Treasure’s buyout offer of S$0.75 per share for the SGX-listed builder. Read more>>
30 Chinese Cities Cut First-Home Mortgage Rates to Boost Market
Thirty mainland Chinese cities lowered mortgage rates for first-time buyers to below a key level in January, according to the Beike Research Institute, as local governments respond to Beijing’s pledge to help people get onto the property ladder.
The number of cities offering rates of 4.1 percent or less — a level perceived as very low in China — grew from 19 to 30 in just two weeks, Beike’s data showed. Eight of them are second-tier cities, and the rest are third- or fourth-tier. Read more>>
China’s Top 100 Developers Report Decline in Sales
China’s top 100 property developers reported a 32.5 percent year-on-year decline in contracted sales in January, according to Chinese real estate consultancy CRIC, suggesting that Beijing’s recent support policies have been more effective in rescuing cash-strapped homebuilders than stimulating demand.
Their January contracted sales declined to RMB 354.3 billion ($52.5 billion) according to CRIC data. This figure represents a 48.6 percent decline when compared with December 2022, as well as an 11.8 percent drop when compared with February 2022, the Lunar New Year holiday month last year. Read more>>
Poly Topples Country Garden as China’s Top Developer
Poly Developments and Holdings Group is now China’s biggest developer by sales, pushing Country Garden into third place, as the country’s top 10 list undergoes a major reshuffle amid plunging property sales last month as the market struggles to respond to a slew of supportive policies.
Poly Development was the best-performing developer in January, with sales of RMB 29.5 billion ($4.4 billion), according to the latest data released by CRIC. China Vanke remained in second place. Read more>>
R&F Affiliate Neglects California Historic Church Project
An affiliate of Guangzhou R&F Properties has neglected to follow through on the preservation and revamp of a century-old church in California, leaving local officials increasingly frustrated by the developer’s inaction.
The project arose from a proposal by Z&L Properties — whose principal executive, Zhang Li, has been arrested in London amid a San Francisco bribery and corruption case — to restore and rescue the old church and then build two housing towers next to the historic building in downtown San Jose. Read more>>
HDFC, India’s Largest Mortgage Lender, Misses Q3 Profit View
Housing Development Finance Corp, India’s biggest mortgage lender, reported a 13.2 percent rise in third-quarter profit on Thursday, missing estimates, as higher funding costs took the shine off strong housing loan growth.
Housing demand has remained strong in India despite a flurry of interest rate hikes last year, as a burgeoning middle class buys real estate. Increased funding costs, however, have compressed net interest margins and net interest income. Read more>>
Singapore Property Market Braces for Surging Chinese Demand
Singapore’s property market is bracing for surging demand from Chinese buyers as the world’s second-largest economy reopens.
Real estate agencies in the city-state have seen more inquiries from mainland Chinese, with industry watcher OrangeTee & Tie noting a 10 to 15 percent increase in January since Beijing announced it was ending three years of global isolation. The border reopening has also seen a spike in queries about immigration to Singapore. Read more>>
Hong Kong Should Explore Middle East, Hang Lung Chief Says
Hong Kong needs to look beyond the East and the West and go anywhere “if there is money to be made”, including the Middle East, Hang Lung Properties chairman Ronnie Chan said Tuesday.
The city would “miss the boat” if it continues to just do what it has done for the past 20 to 50 years. “Globalisation is — for this round — coming to an end. Deglobalisation is happening,” Chan said. Read more>>
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