Goldman Sachs thinks Hong Kong housing could be coming down this year
The world’s best known investment bank just cut its outlook for Hong Kong property stocks in the same week that Moody’s gave a negative prediction for nearly half of the mainland real estate industry, a pair of moves which could signal a downturn or a global conspiracy, depending on your point of view. Read on for these stories and more.
Goldman Sachs Predicts 20% Drop in Hong Kong Home Prices
Hong Kong property stocks were downgraded by Goldman Sachs Group Inc., which predicts a 20 percent decline in home prices as borrowing costs rise.
The drop will be “driven chiefly” by a potential 150 basis points to 200 basis points increase in interest rates and the “limited prospect of any loosening of government cooling measures in the near term,” Goldman Sachs property analyst Justin Kwok said in a research note Thursday. Read more>>
Moody’s Gives Negative Outlook to 46% of Mainland Developers
The proportion of mainland Chinese property developers with negative credit rating outlooks has hit a four-year high, with analysts predicting further financial weakness on the back of slow growth in home sales.
Almost half the mainland developers rated by international credit rating agency Moody’s Investors Service – 23 out of 50 – had negative rating outlooks by the end of last month or were listed for downgrade reviews. Read more>>
Hong Kong Targets Trade Financing in Capital Flow Clampdown
Hong Kong is conducting a multipronged customs, shipping and financial sector crackdown against so-called fake trade invoicing that allows billions of dollars of capital to leave mainland China illegally.
The Hong Kong Monetary Authority said it has beefed up its scrutiny of banks’ trade financing operations, while customs officials are doing more random checks on shipments crossing border posts and raiding warehouses to ensure the authenticity of goods, senior officials working in shipping, logistics and banking said. Read more>>
Soufun Plans to Re-List on the Mainland
SouFun Holdings plans to switch its stock listing from the United States to China, joining companies including Dalian Wanda Commercial Properties that are seeking higher valuations on mainland stock exchanges.
SouFun, China’s biggest real estate Web portal, is seeking to move its shares to the Shanghai stock exchange via an asset and share swap with storage-battery manufacturer Chongqing Wanli New Energy. Read more>>
SG Project Launch Produces Just 8% Sales as Market Wallows
The launches of two residential projects over the long weekend were met with muted response, with the Parc Life executive condominium (EC) project in Sembawang by Frasers Centrepoint Limited (FCL) and Keong Hong Holdings selling over 50 units of the total 628 units as at Monday.
This translates to a take-up rate of 8 per cent, despite the developers throwing in S$3,000 worth of Frasers shopping mall vouchers for people who purchase units of two bedrooms to five bedrooms on Saturday. Read more>>
Frasers Hospitality Plans 10 New Mainland Properties
Frasers Hospitality, a Singaporean owner and operator of international serviced apartments and hotels, intends to vigorously expand its portfolio in China to tap the immense growth prospects arising from development of new infrastructure and master planned cities.
The company plans to open 10 more properties in China’s key cities within the next couple of years, apart from its current network of 14 properties in the domestic market. 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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