Trumponomics may already be hitting the Pinoy economy
Donald Trump rode into office promising to shake things up and the new US president’s economic powers may have already hit the Philippines, or at least he’s having an impact on the island nation’s rebounding office market. Elsewhere in southeast Asia, Chinese developers may be ready for a bigger role in Thailand, and CDL’s hospitality trust benefits from some NZ acquisitions. Read on for all these stories and more.
Donald Trump Puts a Scare into Manila Office Market
The Philippine property market could be poised for a slowdown despite the country managing one of the fastest economic growth rates in the world. Analysts are blaming Donald Trump.
That’s because the newly inaugurated U.S. president has been banging the gavel of protectionist rhetoric. In December, Trump threatened in a tweet to impose a 35 percent tax on products sold in the U.S. by any domestic business that moved operations overseas. Read more>>
Chinese Developers Looking for Thai Opportunities Says JLL
Chinese institutional investors will likely play a bigger role in the Thai property market despite limited activity over the past few years, according to JLL, a professional services firm specialising in real estate.
Among the major Thai-Chinese joint-venture projects is the Baba Beach Club Phang Nga, with 16 hotel villas, 104 residential suites and 42 villas, between China’s Junfa Real Estate Co Ltd and Charn Issara Development Plc. Read more>>
Kiwi Assets Bail Out CDL Hospitality Trust in Q4
CDL Hospitality Trusts anchored its growth from the inorganic contribution from the UK hotel as well as higher NPI growth from the NZ hotel as a result of higher variable rental income. This came as its Singapore properties suffered fair value losses.
According to OCBC Investment Research, its properties in New Zealand will fuel its growth this year.
“Going forward, CDLHT’s Grand Millennium Auckland is expected to continue to benefit from the strong RevPAR growth (24.9% in NZD terms in 4Q16), especially given the revised lease structure with higher variable income,” OCBC said. Read more>>
Overseas Home Sales Lead Keppel Property to S$620M in 2016 Profits
Keppel Corporation’s property division sparked hope for the group in 2016 as it delivered a strong net profit of $620m. According to OCBC Investment Research, Keppel Land reported a higher net profit of $586m, with about 5,720 homes sold comprising 3,800 in China, 1,520 in Vietnam and 380 in Singapore.
Looking ahead, OCBC said the group still expects healthy sales figures for China and Vietnam. Keppel’s property segment prevented the group from sinking further, as it reported a 64.7% fall in net yields in 4Q16. Read more>>
Sunac and Wanda Bonds Expected to Come Under Pressure After Diversification
Chinese property developers investing in new ventures outside their core business are hurting their bonds.
The notes of Sunac China Holdings Ltd and Dalian Wanda Commercial Properties Co. may come under more pressure this year as the groups branch out into non-core businesses. Purchases by highly leveraged Chinese developers unrelated to real estate raise the “knee-jerk question” of whether they might be having problems with their existing business, said Bryan Collins, a fixed-income portfolio manager at Fidelity International in Hong Kong. Read more>>
Xishuangbanna Booms as Beijing Wheezes
Sun Wei, a sale manager with Ping An Real Estate Co., travels frequently between Beijing and Xishuangbanna(西雙版納) in southwestern China’s Yunnan province. Her company sells luxury villas, mostly to buyers who hail from China’s northern provinces.
Home to southern China’s dai (傣) tribe, Xishuangbanna’s lush tropical forests, palm-lined streets and clean air have long made it the exotic domestic sanctuary from frigid northern winters. 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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