Hong Kong homebuyers are backing out of purchases in a COVID-19 stricken economy
In Mingtiandi’s latest roundup of regional news headlines, Hong Kong homebuyers are walking away from deals at a record clip, Chinese online property platform KE raises $2.1 billion in a share sale, and a Chinese investment group withdraws its bid for a Sydney office tower after a delay in regulatory approval.
Record Number of HK Buyers Walk Away From Home Purchases
The number of homebuyers reneging on flat purchases this year has reached an all-time high as the COVID-19 pandemic casts a shadow on the city’s economy, pushing the unemployment rate up and forcing many companies to implement pay cuts as they struggle to stay in business.
They have walked away from 47 deals this month alone, taking the total so far this year to 380, the highest since 2013 when record-keeping first started. Last year’s cancellations stood at 335 versus 160 seven years ago. Read more>>
China Property Site KE Raises $2.1B in Share Sale
Chinese online real estate platform KE Holdings Inc raised $2.1 billion after pricing a sale of new stock at a 5.2 percent discount to its last close.
KE sold 35.4 million American depositary shares at $58 apiece, it said in a statement Thursday, confirming an earlier Bloomberg News report. The company closed at $61.17 on Wednesday. Read more>>
UOB S$181M Lippo Condo Conspiracy Case Goes to Trial
A S$181 million ($135 million) lawsuit filed by United Overseas Bank against developer Lippo Marina Collection (LMC) and seven individuals went to trial this week.
UOB, which commenced legal proceedings in 2015, is accusing the subsidiary of Indonesia’s Lippo Group of being involved in a conspiracy with seven individuals to get inflated housing loans to buyers of condominium units and is seeking damages and costs. Read more>>
$58.5M Sydney Property Deal Cancelled Amid Foreign Policy Spat
A group of Chinese investors has withdrawn its bid to purchase an A$80 million ($58.5 million) office tower in Sydney after the Australian Foreign Investment Review Board delayed approval of the deal for eight months.
Analysts conceded that while the large backlog of foreign investment reviews since scrutiny was tightened in March likely played a role, the lack of any response suggested that Chinese curbs on a range of Australian imports also may have played a part. Read more>>
SG Developer Issues Letter of Demand Against JV Partner
Rich Capital Holdings’ indirect subsidiary Oxley Batam has issued a letter of demand against a joint venture partner, which has denied the allegations in the letter, Catalist-listed Rich Capital said on Wednesday night.
Oxley Batam issued a 4 November letter of demand against PT Karya Indo Batam (PT KIB), with which it had formed joint venture PT Oxley Karya Indo Batam (PT OKIB). Read more>>
Mizuho to Cut SG Office Space on Work-From-Home Success
Mizuho Financial Group is set to trim its Singapore office space, as the Japanese bank looks to revamp the workplace in global financial centres in the wake of the pandemic.
Japan’s third-largest lender is looking to cut about 16 percent of space — equivalent to less than one floor — at Asia Square Tower 2 in the financial district, according to people with knowledge of the matter. Mizuho is an anchor tenant in the building owned by CapitaLand Commercial Trust, occupying four floors measuring about 105,000 square feet (9,755 square metres). Read more>>
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