Hong Kong Lived-In Home Prices Continue Skid and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, lived-in home prices in Hong Kong fall to their lowest since early 2019, while city-based lender Bank of East Asia sustains record-high bond losses driven by China’s housing crisis.

Hong Kong Used Home Prices Fell 2.1% in September

Hong Kong’s lived-in home prices fell 2.1 percent in September, declining for the fourth straight month and hitting the lowest level since January 2019, according to the latest government data.

The secondary home price index compiled by the Rating and Valuation Department dropped to 362.1 from 369.7 in August. The index stood at 361 in January 2019. Read more>>

China Housing Crisis Fuels Record Bad Debt for Bank of East Asia

China’s property debt crisis is deepening challenges for creditors. The latest is a record drop in bonds from a Hong Kong-based lender with a comparatively high rate of soured loans to the sector.

Almost 9 percent of Bank of East Asia’s loans to Chinese property developers were likely impaired as of the end of June 30, Bloomberg Intelligence estimated based on the bank’s real estate exposure and impaired loan data. That outstrips the 3-6 percent for major Chinese peers. Read more>>

Mapletree Industrial Trust’s Acquisition Drought Likely to Persist

Investors pining for inorganic growth from Mapletree Industrial Trust are expected to continue to be disappointed for now, as the Singapore-listed REIT’s manager is likely to extend its acquisition drought until at least the middle of next year.

The trust has not announced any acquisitions since May 2021, when it proposed the purchase of a portfolio of 29 data centres in the US for S$1.8 billion (now $1.3 billion). Read more>>

Central Bank Says Singapore Growth to Slow ‘Below Trend’ in 2023

Singapore’s economic growth is expected to slow to a pace that is “below trend” next year, weighed down by key external-facing sectors such as manufacturing and financial services, the Monetary Authority of Singapore said Thursday in its half-yearly macroeconomic review.

Meanwhile, the global economy is in a “precarious” state with growth weakening even as inflation stays high, in a divergence that is expected to last “for at least several quarters”. Read more>>

Prices, Rents of Singapore Industrial Space Kept Rising in Q3

Prices and rents of Singapore’s industrial spaces continued to rise for the eighth straight quarter in the third quarter, according to JTC’s quarterly market report released Thursday. But some analysts see this growth moderating in 2023 amid concerns of recession and inflationary pressures.

Industrial space prices rose 2 percent on the quarter and 7.2 percent on the year. Prices were up 1.9 and 2.1 percent on a quarterly basis in the multiple-user and single-user factory segments, respectively. Read more>>

Two Freehold Industrial Units in Mandai for Sale at S$100M

Two adjourning freehold industrial land properties in Mandai have been put up for sale with a guide price of S$100 million ($71 million), sole marketing agent Singapore Realtors said Thursday.

Located at 10 and 12 Mandai Estate, the properties have an approximate land area of 34,919 and 30,246 square feet (3,244 and 2,810 square metres) respectively. The area is a 10-minute drive from Woodlands Checkpoint. Read more>>

Lian Beng Says It Has ‘Taken Steps’ to Rectify Potential Leasing Violations

With a subsidiary of Lian Beng Group being investigated by Singapore authorities for allegedly leasing out a building illegally, the construction group and property developer said Wednesday in a bourse filing that it has “taken steps” to meet leasing requirements.

The potential violations by the subsidiary, Wealth Assets, which is 80 percent owned by Lian Beng, was first reported by the Straits Times on Tuesday. The remaining 20 percent is owned by Vincar Assets. Read more>>

Housing Sales in India’s Top 7 Cities May Reach All-Time High in 2022

Going by the momentum of housing sales in the ongoing festive period and that of the first three quarters of this year, 2022 is likely to breach the previous peak of 2014 with an all-time high sales across India’s top seven cities.

As per the latest research by real estate consultancy firm Anarock, total sales in the top seven cities could exceed 360,000 units in 2022. The previous peak year of 2014 saw the sale of 343,000 units. Read more>>

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