In today’s roundup of regional news headlines, Hong Kong reclaims its crown as the costliest city in which to live and work overseas, even as an expat exodus drags down luxury residential rents. Mainland developer Vanke, meanwhile, is calling the bottom on China’s ailing property market.
Hong Kong has been named the most expensive city in which to live and work overseas this year, according to a new report that highlights the impact of rising living costs and worsening macroeconomic trends on the expatriate market.
The city rose one place in Mercer’s 2022 Cost of Living index to regain pole position after being bumped to second place in 2021 by Ashgabat, Turkmenistan. It marks the fourth time in five years that the Asian financial hub has been ranked as the costliest location for overseas workers. Read more>>
Hong Kong’s luxury homes bucked the global market trend, becoming the only high-end housing market in 10 major cities to suffer a drop in rents this year as the city’s economy struggled under stringent COVID-19 curbs, according to Knight Frank.
Prime rents fell 1.1 percent in the first quarter from the preceding three months, based on a new index compiled by the property consultancy. New York led gains with a 10.6 percent increase, followed by 3.8 percent in Toronto and Singapore and 3.6 percent in London. Read more>>
Major homebuilder China Vanke said the property market has bottomed in the short term, with a clear monthly rise in sales in June, sparking a property sector rally in Wednesday morning trade.
Yu Liang, chairman of China’s No.2 developer, cautioned that the recovery would be slow and mild, but his comments helped drive the mainland’s CSI Real Estate Index up 6 percent, while Hong Kong’s Hang Seng Mainland Properties Index rose more than 1 percent. Read more>>
Some of Hong Kong’s largest developers are looking to pets, teens, kids and aficionados of digital avatars to lure people back to shopping malls as Hong Kong emerges from its worst phase of the COVID-19 pandemic.
Sun Hung Kai Properties is investing HK$300 million ($38 million) to renovate its New Town Plaza in Sha Tin, adding 80,000 square feet (7,432 square metres) of entertainment zones tailored for pet lovers, teens and kids. Sino Land’s Tmtplaza in Tuen Mun, meanwhile, is banking on luring fashion fans with non-fungible tokens and the prospect of dressing up digital avatars. Read more>>
A real estate developer in Nanjing launched an unusual marketing strategy, allowing homebuyers to pay for their homes using watermelon at a rate of RMB 20 ($3) per kilogramme.
A representative of the company said Tuesday that the bizarre promotional event has been suspended on orders from headquarters. “We were told to delete all promotional posters on the social media platforms,” the person said, noting that the developer may design other types of promotional activities. Read more>>
DBS has inked an agreement to sell 33 Changi North Crescent, a property under embattled Tee International that the bank is conducting mortgagee sales for.
In a bourse filing on Tuesday, Tee disclosed that DBS has entered into a sale and purchase agreement with Applied Materials South East Asia for 33CNC, with the completion expected to take place on or around 18 July. Read more>>
Moody’s Investors Service has placed Sino-Ocean Group Holding’s Baa3 issuer rating on review for downgrade.
At the same time, the credit agency placed on review for downgrade the Baa3 senior unsecured ratings on the bonds issued by Sino-Ocean Land Treasure Finance I Ltd, Sino-Ocean Land Treasure Finance II Ltd and Sino-Ocean Land Treasure IV Ltd, which are guaranteed by Sino-Ocean, and the Ba2 rating on the subordinated, guaranteed perpetual capital securities issued by Sino-Ocean Land Treasure III Ltd and guaranteed on a subordinated basis by Sino-Ocean. Read more>>
S&P Global Ratings raised Greenland Holdings by one notch to CCC on Wednesday after the Chinese state-backed property developer completed a one-year maturity extension on $500 million in senior unsecured notes.
Last Wednesday, S&P downgraded Shanghai-based Greenland to “selective default” after the firm proposed and later completed a one-year maturity extension of its $500 million bond originally due on 25 June. Read more>>