A new data centre in Sydney leads today’s list of real estate headlines from around the region, as Equinix and PGIM Real Estate open their first hyperscale facility in the capital of New South Wales. Also in the news, China’s nascent commercial REIT sector scores a win with the acquisition of a stake in a commercial portfolio in Beijing, mainland land sales struggle and Tokyo home prices continue to slide.
Equinix and PGIM Real Estate on Monday announced the opening of their first xScale data center in Sydney, named SY9x. The formal launch of the hyperscale facility followed the closing of the $575 million joint venture between the parties in March 2022.
Equinix’s global xScale data center portfolio now represents more than $8 billion of investment across 36 facilities, and is expected to deliver more than 720 megawatts (MW) of power capacity when fully built out. Read more>>
China Merchants Commercial Real Estate Investment Trust announced on Monday that it plans to acquire a 51 percent stake in a company holding the Onward Science and Trade Centre in Beijing for RMB 1.34 billion ($200 million).
The mainland REIT is buying the stake in the 320,000 square metre (3.44 million square foot) complex in the capital’s Chaoyang district, which includes the China Merchants Group Tower, from a local fund managed by China Merchants Shekou. Read more>>
The proportion of plots of land withdrawn in the first round of auctions held over five months between February and June this year in 20 major Chinese cities has increased, with cash-strapped developers reluctant to splash the cash.
The average auction scrapping rate was 17 percent – up from 6.5 percent for the same batch last year – in the cities, which have finished their first round of land sales, according to 58 Anjuke Real Estate Research Institute, a Shanghai-based property research firm. Land in 22 major cities in China now only goes on sale three times a year according to a centralised scheme introduced by Beijing early last year. Read more>>
The average sale price of a second-hand apartment in Tokyo’s 23 wards recorded the 25th consecutive year-on-year increase in May, with prices increasing by 10.8 percent to 876,200 Yen/sqm.
A total of 1,522 apartments were reported to have sold, down 9.1 percent from last year. Read more>>
Singapore’s condominium resale prices rose for the 22nd straight month in May 2022, rising 1.6 percent month on month and 8.4 percent when compared to the same month the previous year.
In a flash report released on Tuesday (Jun 14), SRX Property and 99.co said growth was led by resale price increases in the outside central region (OCR) and the rest of central region (RCR), where prices rose 0.7 percent and 0.5 percent, respectively. Read more>>
Several cities in Guangdong province have lowered the minimum down payment requirement for the prospective first-home buyers, the state-owned Shanghai Securities News reported.
Zhanjiang, Yangjiang, Zhaoqing and Maoming have trimmed the minimum down payment ratio for starter home buyers to 20 percent from 25 percent, the report said. The deposit requirement for first-time home buyers in Shanwei has also been cut to 25 percent, and those who want to purchase a second home but with outstanding mortgage loans will need to pay 30 percent of the total property price to get a new mortgage loan, it said. Read more>>
The spectacular fall from grace of China’s top luxury retailer Secoo offers a cautionary tale about how many companies which were once seen as rising stars in a high-growth market are now facing the harsh reality of increased competition and weak consumer spending in a slowing economy.
Secoo, started by Chinese entrepreneur Richard Rixue Li and enthusiastically backed by private equity capital, rose from a second-hand handbag shop into China’s largest luxury goods exchange for individuals with a 2017 initial public offering on Nasdaq raising US$140 million. Read more>>
A few key institutional investors in South Korea are set to commit up to $300 million to a $3.5 billion private credit fund by US private debt manager Antares Capital LP, investment banking sources said on Friday.
Three Korean mutual aid funds have committed $160 million to the fund. Yellow Umbrella Mutual Aid Fund, Korea Scientists & Engineers Mutual Aid Association (SEMA) and Military Mutual Aid Association (MMAA) have respectively committed $70 million, $60 million and $30 million, The Korea Economic Daily understood. Some other Korean institutions, including insurers, are also considering capital commitments this month, sources added. Read more>>