Leading today’s news roundup, home prices slid in 11 of China’s biggest cities in January, as smaller conurbations continued to climb. Also in the headlines, prime office rents in Singapore’s downtown core are believed to have hit bottom at S$9 ($6.8) per square foot per month, and Sun Hung Kai’s 782,000 square metre development in Shanghai got a major concrete injection over the Chinese New Year holiday. And the mainland saw nearly $4 billion in hotel sales last year, with domestic firms leading the way, so read on for all the details.
China’s new home prices grew in January although major cities saw early signs of softening, as the government continued its efforts to rein in speculative demand to fend off bubble risk.
The acceleration in prices across the nation suggests moves by provincial governments to support first-time buyers and upgraders by relaxing some purchase restrictions may be further fanning price gains in a market where fear of missing out is strong and mortgage fraud is rampant. Read more>>
According to its Savills Investment Management (IM), after two-and-a-half years of decline, CBD office rents in Singapore have bottomed out and should accelerate through 2021 as tenants capitalise on low rents and move to newer and better-quality buildings.
Its 2018 Outlook said that prime office rents reached $9 psf per month whilst yields were 3.25% in 2017. The firm expects rents will go higher in 2018 whilst the yields will stabilise due to an improving economic backdrop and business sentiment, a moderating supply cycle, as well as further interest rate hikes. Read more>>
Xujiahui will have a new downtown landmark when the tallest building west of the Huangpu River is completed around 2023. Construction has started on the basement of the building after 4,700 cubic meters of concrete were poured into the basement for the Xujiahui Center over the Spring Festival holiday that ended on Wednesday, marking a milestone for the project, the Xuhui District government said over the weekend.
Dubbed the last core site for development in Shanghai, the complex covers a total floor area of 782,000 square meters, twice as large as the Shanghai World Financial Center in the Pudong New Area. It will comprise three skyscrapers, including a 370-meter tower on Hongqiao Road and Yishan Road N, west of the landmark Grand Gateway Plaza. Read more>>
Chinese investors are eyeing local hotel investment opportunities to continue expanding the market while Beijing continues to restrict overseas investment, according to David Marriott from JLL’s hotels and hospitality division in China. Opportunities for foreign investment in China’s hotel market have decreased in response to the growing domestic interest.
China’s State Council and the National Development and Reform Commission restricted investment in certain industries, including real estate and hotels, last August. JLL data showed that China’s market had close to $4 billion in hotel sales last year. Most of the purchases were made by Chinese companies with Beijing scoring the highest number of transactions. Read more>>
Banyan Tree Holdings Limited on Monday (Feb 26) announced it intends to make an offer for the remaining shares it does not already own in its Thai-listed subsidiary, Laguna Resorts & Hotels Public Company Limited (LRH).
The acquisition will be by way of a voluntary tender offer for the LRH shares by Banyan Tree and its subsidiary, Banyan Tree Resorts & Spas (Thailand) Company Limited, at 40 baht in cash for each LRH share for a total consideration of approximately 2.28 billion baht (S$95.5 million). Read more>>
The owners of Windy Heights in Eunos have put their property up for collective sale, billing it as one of the largest freehold residential redevelopment sites to come on the market in the area.
The property along Jalan Daud comprises four blocks of 192 apartment units, eight penthouses and two commercial units. Read more>>