China is expected to reverse ‘harsh policies’ and promote the housing sector again (Getty Images)
In today’s roundup of regional news headlines, a leading Chinese economist says the government will act to correct past policies and halt the property market slump, and Singaporean developer Ho Bee Land warns of a significant profit drop.
China to Correct Past ‘Mistaken’ Housing Policies: Top Economist
China will roll out supportive measures for the property market in order to correct past, “mistaken” policies aimed at curbing the sector’s growth, according to the head of a top economic think tank in the country.
“It seems like the government is going to put forward more concrete measures,” said Yao Yang, dean of the National School of Development at Peking University. “The government has to at least stop the decline of the housing market. There are encouraging signs of it.” Read more>>
Ho Bee Land Flags ‘Significant Decrease’ in Net Profit
Singapore-based developer Ho Bee Land is expecting to record a “significant decrease” in its net profit for the six months and full year ending 31 December as compared with last year.
According to guidance released Wednesday, the group’s year-on-year revenue and operating profit have risen on higher sales of development properties in Singapore and Australia, as well as higher rental income from investment properties in Singapore and London, but these have been offset by several factors. Read more>>
China Developers’ Recovery After $74B Rout Faces COVID Turmoil
Despite a disastrous year for China’s property sector, markets turned from extreme pessimism to euphoria in just a matter of weeks thanks to Beijing’s policy bazooka. Whether the rally has more legs is still in doubt.
Traders piled into the battered sector after Beijing announced policy support measures last month, including expanding a key bond-financing programme to private developers and lifting a ban on equity refinancing. With some gains fading recently, investors say that the rout is far from over given weak homebuyer confidence and an uncertain economic recovery. Read more>>
State Council, PBOC Vow to Boost Growth, Property
Chinese authorities ramped up their calls to prioritise growth next year and help the property sector recover from its worst slump on record, in further signs that the economy will be top of mind in 2023.
The State Council, central bank and top securities watchdog each met in recent days to study last week’s agenda-setting economic policy meeting, according to Wednesday reports. Readouts of those meetings detailed a commitment to policies intended to rescue the economy and set it on a track to stability. Read more>>
Mukesh Ambani’s Reliance to Acquire Metro’s India Business for $344M
Billionaire Mukesh Ambani’s Reliance Industries is set to acquire German firm Metro’s India business. A deal that is expected to cost INR 2,850 crore ($344.4 million) will see subsidiary Reliance Retail Ventures Ltd acquire Metro’s wholesale operations in India.
According to a joint statement, RRVL on Thursday signed definitive agreements to acquire a 100 percent equity stake in Metro Cash & Carry India for a total cash consideration of Rs 2,850 crore, subject to closing adjustments. Read more>>
Gemini Rosemont Adds California Office Building to Portfolio for $59M
Gemini Rosemont Commercial Real Estate has acquired the Peninsula Life Science Center in northern California for $59.4 million.
The eight-storey office building in the San Francisco Peninsula city of Burlingame adds 65,804 rentable square feet (6,113 square metres) to the portfolio of Gemini Rosemont, which is sponsored by Hong Kong-listed Gemini Investments Holdings. Read more>>
Hong Kong’s Tiniest Apartments Take Biggest Hit in Housing Slump
Hong Kong’s notorious tiny apartments, sometimes no bigger than a parking space, have emerged as the biggest losers in the city’s property downturn.
Buyers are snubbing so-called nano flats as they opt for bigger options after mortgage policy changes and price drops. Developers were only able to sell 48 percent of the studio apartments available in the first 11 months this year, while the rate for one- and two-bedroom apartments stood at 53 and 67 percent respectively, according to Midland Realty. Read more>>
Apartment Prices in Central Tokyo Hit New High in November
Apartment prices in central Tokyo hit a record high in November, with the average reported sale price of a second-hand apartment in the central three wards at JPY 1,627,200 ($12,317) per square metre.
That figure is a 3.3 percent increase from the previous month and an 18.2 percent jump from last year. It’s the highest price-per-square-metre on recent record. Read more>>
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