Population ‘Time Bomb’ to Hit Hong Kong Housing and More Asia Real Estate Headlines

In today’s roundup of regional headlines, fresh research sounds alarm bells over an ageing population’s impact on the Hong Kong housing supply, and Far East Consortium hits practical completion on Melbourne project. Also in the news, China’s home price growth slows in the absence of new policy support and CapitaLand Ascendas REIT upsizes a private placement.

Hong Kong Faces Shortage of 60,000 Residences for Elderly by 2032: JLL

Hong Kong will face a shortage of over 60,000 residences for the elderly by 2032 as the city’s population rapidly ages, before eventually becoming the world’s oldest society by 2050, according to JLL.

The city’s Kwun Tong, Yuen Long, Sha Tin and Eastern districts are among the areas with the most serious ageing problem, the property consultancy said Tuesday in a report. In Kwun Tong, only one in 41 elderly people will find a place in elderly homes, JLL said. Read more>>

Growth in China’s Home Prices Slowed in April

China’s new home prices in major cities grew at a slower pace in April, despite the government’s call to stabilise the real estate market, as the country’s economic recovery tapered off without additional policy support.

Average new home prices in 70 major Chinese cities rose 0.32 percent in April from a month earlier, slowing from the 0.44 percent month-to-month increase recorded in March, according to calculations by the Wall Street Journal based on official data released Wednesday. Read more>>

Far East Consortium Reaches Practical Completion on Melbourne Mixed-Use Project

Construction giant Multiplex has reached practical completion of stage two of Far East Consortium’s A$2 billion ($1.3 billion) West Side Place in Melbourne’s CBD.

The Brookfield-owned group completed the final work on stage one of the largest mixed-use project undertaken in the city in the past decade after Probuild’s collapse last year. Read more>>

CapitaLand Ascendas REIT Upsizes Private Placement to S$500M

Singapore-listed CapitaLand Ascendas REIT has increased the issue size of its S$450 million private placement announced this week to S$500 million ($372.1 million). At the enlarged issue size, the private placement was 3.1 times covered.

The placement’s proceeds will include S$139.5 million to partly fund the acquisition of Seagate Singapore’s R&D building. Read more>>

Tanjong Pagar Site Up for En Bloc Sale Again at Unchanged S$216M

A commercial site on Singapore’s Hoe Chiang and Lim Teck Kim roads was again put up for collective sale via public tender on Wednesday at an unchanged reserve price of S$216 million ($160.8 million), according to sole marketing agent PropNex.

The 999-year leasehold site was first offered for collective sale on 19 January. The tender closed with no bids on 22 March. Read more>>

Goldman Sachs, Morgan Stanley Rethink Ambitious China Plans

More than three years after China’s grand financial opening, it’s becoming clear to Wall Street giants that their dreams of windfall profits from the $60 trillion market are more elusive than ever.

Goldman Sachs and Morgan Stanley are among banks scaling back ambitious expansion plans and profit goals as a deteriorating geopolitical climate and President Xi Jinping’s willingness to sacrifice economic priorities for security concerns rock the private sector and throttle dealmaking. More drastic job cuts are being eyed at the biggest banks, according to senior executives who asked not to be identified discussing private matters. Read more>>

US State Governors Urge Vanguard to Create China-Free Fund

The governors of South Dakota, Mississippi, Iowa and Texas are asking investment management company Vanguard to create an investment fund that doesn’t include China.

“Many of our states utilise Vanguard as an asset manager for our state investment dollars,” the governors said. “Vanguard has distinguished itself among its competitors in part by charging significantly lower fees, allowing states like ours to give more money back to our people.” Read more>>

Restructurings Spreading Across Indonesia’s Construction Sector

A second Indonesian state-owned builder is seeking restructuring as the country’s construction push heightens worries about the sector’s ballooning debt burden.

PT Wijaya Karya has asked banks to allow it to delay making payments on its liabilities as it seeks to reorganise debt and strengthen its capital, an executive said. The nation’s largest listed construction company, PT Waskita Karya, got approval in February from investors to defer payments on three rupiah-denominated bonds. Read more>>

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