Hong Kong Landlords Triple Office Deposits as Risks Rise and More Asia Real Estate Headlines

Typhoons are out of season, but its stories about dark clouds that lead today’s real estate headlines from around Asia, as one of Hong Kong’s biggest landlords now says he is demanding deposits of up to six months for some of his more questonable clients, and mainland development giant China Evergrande cuts its sales target for 2019 to the lowest level in five years. Keep reading for all the details on these stories and more.

HK Landlord Triples Deposits For Flaky Tenants

Commercial landlords in Hong Kong, who own some of the world’s most expensive offices, are doubling or tripling the money that tenants must put down as deposit, as a downturn in business sentiment and tightening liquidity in China have led to several cases of renters reneging on leases.

Tenants of businesses related to cryptocurrencies, and those who hail from mainland China – especially those who are less-known to Hong Kong’s landlords – have been placed under scrutiny, according to several office owners and consultants in the city. Read More>>

China Evergrande Tempers 2019 Outlook in Face of Downturn

China Evergrande Group, one of the country’s biggest property developers, has set its sales growth target for 2019 at the lowest in at least five years amid weakening demand.

Evergrande is targeting 600 billion yuan (US$88 billion) in contracted sales this year, according to a filing to the Hong Kong stock exchange on Monday. That is 9 per cent higher than the 551 billion yuan of contracted sales recorded last year, the most modest goal in terms of growth since at least 2015, according to a review of its past performance. Read More>>

KPF Completes 400-Metre China Resources Tower in Shenzhen

PF has announced the completion of the third-tallest building in Shenzhen. The China Resources Headquarters, a 400-meter-tall commercial office tower, stitches together retail, residential, and office functions surrounded by 2,000 square meters of public space.

The tower, inspired by the shape of winter bamboo shoots, seeks to “invigorate Shenzhen’s urban fabric while providing one of the country’s premier companies with a visual icon symbolizing its historic growth and prominent stature.” Read More>>

India’s OYO Hotels to Add 500 Townhouse Units in 2019

Hospitality firm OYO is looking to add up to 500 Townhouse hotels across India during 2019 as part of its expansion plan, a senior company official said. In all, the company has 68 Townhouse hotels in Delhi, Hyderabad, Bengaluru, Kolkata, Mumbai, Noida, Ghaziabad, Jaipur and Pune.

“In 2019, OYO will be adding 400 to 500 Townhouse across key metros and leisure destinations in India,” OYO Townhouse COO Ankit Tandon told PTI. Read More>>

Singapore’s ERA Realty Unveils Joint Property/Wealth Management Unit

Beyond property-related guidance, trained ERA agents can offer financial advice on asset management, trust and will creation.

Real estate firm ERA Realty Network unveiled its pilot project Plush by ERA in an effort to become more adept at meeting the increasing demand of their high-net-worth (HNW) clients by providing its agents with enhanced financial training, an announcement revealed. Read More>>

Sino Land Backs Off of Commission Cut After Agent Revolt

Sino Land said late Thursday that it would revise commission fees at its Grand Central project in Kwun Tong to 2 per cent starting from January, offering a partial concession to property agents angered by the developer’s decision to slash the fee last week.

Management from Centaline Property Agency held talks on resolving the issue with their counterparts at Sino Land on Thursday afternoon, amid growing resentment among agents towards the developer’s unilateral move to lower commissions below the standard rate. Read More>>

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