In today’s roundup of regional news headlines, China’s indebted Evergrande Group announces an early redemption of convertible bonds, Hong Kong loses its lustre with global property investors, and Singapore says it will adjust policies as necessary to keep the real estate market in line with fundamentals.
Indebted Chinese property developer Evergrande Group said on Monday that it would redeem early HK$16.1 billion ($2.1 billion) worth of convertible bonds maturing in 2023, in a move one analyst said was a sign that investors had sought early repayment.
Investors have been concerned about cash flow at Evergrande, whose interest-bearing indebtedness is about $110 billion, as the developer scrambles to raise funds and cut debt in the face of tighter regulations in the sector. Read more>>
China’s corporate defaults may set a record this year when a trio of the central bank’s debt limits kick in this month, as they crimp the ability by borrowers to use loans to repay their outstanding debt.
One in five of China’s biggest real estate developers, including China Evergrande Group, will be barred from borrowing any more money from banks, according to the three red lines on debt drawn by the People’s Bank of China, the state-owned Economic Information Daily said. Read more>>
Beijing’s property investment market witnessed active en-bloc transactions last year in spite of the COVID-19 pandemic.
The sales reached nearly RMB 64 billion ($9.9 billion), just off the historical peak of RMB 86.6 billion in 2019, according to CBRE. The global real estate services provider attributed it to more emerging trading opportunities for both domestic enterprises and international investors. Read more>>
Hong Kong seems to have fallen out of favour with global real estate investors, even as a greater number are either keeping or increasing their allocations for the Asia Pacific region this year, various surveys have found.
The special administrative region was not among the top 10 destinations in a survey jointly conducted by the Asian Association for Investors in Non-Listed Real Estate Vehicles, the European Association for Investors in Non-Listed Real Estate Vehicles and the Pension Real Estate Association. Hong Kong came in at No.11, same as last year, having fallen from the ninth spot that it occupied along with Macau in 2019. Read more>>
The Singapore government is monitoring the developments in the property market “very closely”, and will adjust policies if necessary, to maintain a stable and sustainable property market for Singaporeans, said National Development Minister Desmond Lee.
Speaking at the Building and Construction Authority-Real Estate Developers’ Association of Singapore Built Environment and Property Prospects Seminar 2021 on Monday, Mr Lee said that the government has, over the years, put in place several measures to ensure that prices in the private sector housing market move in line with economic fundamentals. Read more>>
The Bangkok office market is slowing because of shrinking demand and future supply overwhelming the market, with flat growth in occupancy and rents expected this year.
Teerawit Limthongsakul, managing director of property consultant Nexus Real Estate Advisory, said many office tenants decided to scale down or refrain from expansion as they sought to cut costs. Read more>>
Property consultancy Savills India on 19 January announced the launch of Workthere in India. Workthere is a brokerage-backed online listing platform for flexible, co-working and managed office spaces, across geographies.
Upon launch, it will showcase flexible office spaces from more than 40 brands with over 70,000 seats across six cities, including Delhi, Mumbai, Pune, Chennai, Bengaluru and Hyderabad, with expansion across other locations planned in the months to follow. Read more>>