Hong Kong home buyers will have more choices in the new year
Hong Kong home prices have been rising just in time for the cities developers to flood the market with 5,000 new units in the first quarter. Also in the real estate headlines today, the mainland’s real estate upswing was good news for city governments, and China’s tallest building has yet to live up to leasing expectations.
Developers Set to Launch 5000 Hong Kong Homes in Q1
Competition among developers in Hong Kong is set to pick up with as many as 5,000 new flats ready for launch in the first quarter of 2017.
Sun Hung Kai Properties (SHKP) and China Overseas Land & Investment (Coli) are expected to kick off the sale of their new projects in Yuen Long and Kai Tak area with a combined 1,450 units shortly. Read more>>
Top 10 Chinese Cities Sold RMB 1.24 Tril in Land in 2016
China’s red-hot property market drove land auction prices up 30 per cent to record levels last year.
The top 10 Chinese cities earned a total 1.24 trillion yuan from land sales, a 35 per cent jump from a year ago, according to data from the China Index Academy (CIA), a private property research institute. Six cities, mostly second-tier, alone each generated more than 100 billion yuan each in sales. Read more>>
Shanghai Tower Falls Short of Leasing Expectations
China’s tallest skyscraper is coming up short.
Shanghai Tower, a twisty 121-story cone at the heart of the city’s Lujiazui financial hub, has had trouble finding companies to move in since the last beam was placed atop the building three years ago.
As the world’s second-tallest building—after Dubai’s Burj Khalifa—it was designed by state-owned developer, Shanghai Tower & Construction Development Co. to be a global center for top investment banks, insurance firms and fund management houses. Instead, as it has struggled to lease up, Shanghai Tower is increasingly becoming a symbol of the country’s slowing economy. Read more>>
Logistics Developers Go for the Cold in China
Some of the world’s largest distribution center developers are beefing up their investments in specialized cold-storage facilities in China to meet the growing demand among Chinese consumers for higher quality vegetables, fruits, cheeses, meats and frozen foods like ice cream.
Global Logistic Properties Inc., the largest owner of logistics space in China, had about 1.2 million square meters (12.9 million square feet) of cold-storage space at the end of 2016, up about 35% for the year, according to Victor Mok, co-president of GLP China. Read more>>
Why Evergrande’s $33B Valuation May Not Be Good News
This Chinese poster child for debt has a way of making safe moves look dangerous.
China Evergrande Group, the country’s largest developer by assets, said Monday that it has agreed to sell a 13.2% stake in its major subsidiary, Hengda Real Estate, to eight investors for 30 billion yuan ($4.3 billion). This values Hengda, which owns Evergrande’s core property development business, at $33 billion—almost four times the parent’s current market capitalization. Read more>>
Guangzhou R&F Ends Year with $265M Bond
Guangzhou RF Properties, a leading Chinese developer, raised $265 million last week from a US dollar five-year non-call three bond deal, returning to the international capital markets for the first time in almost three years.
The Ba3BBB rated homebuilder joined a end-of-year fundraising rush, turning to the market a day after KWG Property issued a $250 million bond and Modern Land sold a $150 million deal. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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