Hong Kong’s Monetary Authority is making some homebuyers sweat
In today’s roundup of regional news headlines, Hong Kong’s de facto central bank raises its base rate to the highest level since March 2008, prompting the city’s finance chief to issue a statement downplaying the likelihood of a sharp property market adjustment.
Hong Kong Hikes Base Rate to 14-Year High as Fed Signals More Pain
Hong Kong’s cost of borrowing increased for the fifth time in six months, prompting the city’s top financial official to warn of “negative growth” in the local economy as the de facto central bank followed the US Federal Reserve in raising its key interest rate.
The Hong Kong Monetary Authority raised its base rate by 75 basis points to a 14-year high of 3.5 percent with immediate effect, according to a statement on Thursday, hours after policymakers in the US raised the Fed funds target rate by the same quantum to between 3 and 3.25 percent. Read more>>
HK Finance Chief Says No Sharp Risk to Property Prices
Hong Kong’s finance chief said Thursday that he does not see a sharp risk to the city’s real estate market nor a need to adjust property control measures, as the financial hub braces for more interest rate hikes.
Finance Secretary Paul Chan was speaking after the Hong Kong Monetary Authority raised its base rate charged through the overnight discount window by 75 basis points to 3.5 percent, its highest since October 2008, following the same move by the US Federal Reserve. Read more>>
Daiwa House Logistics Trust Buying 3 Assets in Japan for $33M
Singapore-listed Daiwa House Logistics Trust has launched its maiden acquisition following its IPO last November, with plans to buy two freehold logistics facilities and a piece of freehold land in Japan from sponsor Daiwa House Industry for JPY 4.68 billion ($33 million).
According to DHLT, the blended implied NPI yield for the two properties is 6.5 percent, which is higher than the blended NPI yield of the existing properties in DHLT’s portfolio of 6.1 percent. Read more>>
ICP Eyes Nagoya, Sapporo Hotel Stakes in $46M Deal
Singapore-based ICP has proposed to acquire a stake in two hotel properties in Sapporo and Nagoya via a JPY 6.5 billion ($46 million) transaction, the firm said late Wednesday.
The group, through its wholly owned subsidiary, will take a 5 percent stake in a joint venture that acquires the properties. JV partner Topco, a subsidiary of a US-based asset management firm specialising in alternative investments, will own the remaining 95 percent. Read more>>
China Fortune Land’s Debt Plan Meets Resistance
The first Chinese developer to default under government steps to curtail the sector’s debt growth faces creditor opposition to a long-awaited offshore restructuring plan, which seeks to push out repayment by eight years.
Advisors of an ad hoc group of China Fortune Land Development dollar-bond holders scheduled a call open to all such creditors at 6pm Hong Kong time Thursday, during which they were to explain why the offer released last week shouldn’t be supported. Read more>>
Evergrande Mulls Asset Transfer to Property Unit for Debt Payment
China Evergrande Group said Wednesday that it was considering transferring some assets to its property unit to settle some of the unit’s debt payments.
In July, the company revealed that loans secured by Evergrande Property Services had been diverted to the parent group, which led to Evergrande Group’s chief executive and finance head stepping down. Read more>>
Amid Frenzied Buying at Singapore Condo Launches, Hints of a Peak
Over 16 and 17 September, GuocoLand sold 508 units, or 84 percent, of 99-year leasehold Lentor Modern’s 605 homes, at prices ranging from S$1,856 to S$2,538 ($1,309 to $1,790) per square foot. Lentor Modern’s success follows strong take-up at recent launches of leasehold condominium developments in the Outside Central Region.
About 75 percent or 118 of 158 homes at Sky Eden@Bedok were sold at an average price of around S$2,100 per square foot at the project’s launch on 7 September. AMO Residence in Ang Mo Kio sold 366 of its 372 units in July at a median price of S$2,110 per square feet. Read more>>
China’s Smaller Cities Bear Brunt of Housing Glut
The stock of new homes in small Chinese cities hit its highest since 2019 as of the end of August, according to a report from an independent consultancy, amid fragile demand in the country’s downtrodden property market.
The number of unsold new homes in tier-3 and tier-4 cities jumped 5 per cent as of the end of August from a year ago, according to China Real Estate Information Corp (CRIC), which monitors 100 Chinese cities. Read more>>
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