Dongguan in Guangdong this week became the 21st Chinese city to restrict home purchases
At least 21 cities have now instituted home purchase restrictions across China, but the demand suppression measures have yet to overcome the effect of months of loose monetary policy and rising public sentiment toward real estate purchases. In related headlines, a major mainland developer says its profits will be 200 percent higher this year than in 2015, and a Chinese company grabs a piece of Australia’s biggest cattle ranch. Read on for all these stories and more.
Housing Restrictions Fail to Break China Housing Fever Over Golden Week
A flurry of fresh tightening policies during the National Day holiday period has so far failed to dampen home buyers’ enthusiasm in most Chinese cities, as looser credit conditions and a dearth of high-yielding assets remain.
The property markets in many second-tier cities defied the new wave of curbing measures, and in some cases even saw prices surge, according to their turnover data in the first week of October. Read more>>
China Merchants Land Expects 200% Jump in Profit for 2016
China Merchants Land, the Hong Kong-listed property unit of state-backed mainland conglomerate China Merchants Group, estimated that its unaudited net profit for the whole of this year will be 200 per cent higher than 2015.
The company said the stellar forecast is based on “a significant increase in the total gross floor area of properties completed and delivered” for the year’s first nine months, and the fact that it had booked profit on more projects completed by firms in which it owns majority or controlling stakes. Read more>>
Wanda Sells Off Online Travel Assets to LY.Com
Billionaire Wang Jianlin’s Dalian Wanda Group Co. plans to reorganize its travel-agency assets.
Wanda Beijing Tourism Investment Co. will be sold to an affiliated company called LY.com, the group said in a statement on Sunday. Closely held LY.com, which plans to finance the purchase via cash and stock, said in a separate statement that its valuation will increase to 20 billion yuan ($3 billion) after the deal. Read more>>
Shenzhen Housing Sales Fell 5% Over Holiday
Shenzhen, the country’s most expensive housing market, is showing early signs of a cooling in sentiment, after the introduction of new buying restrictions last week.
According to the latest official data, new home transactions during the “golden week” national holiday (October 1-7) – a traditional peak season for home buying – fell 5 per cent week on week to 508 units. Read more>>
Chinese Company Teams with Gina Rinehart to Buy Australia’s Biggest Ranch
Gina Rinehart has entered a bid to buy one of the country’s largest cattle stations for $365 million in partnership with a Chinese real estate firm Shanghai Cred.
The wealthy mining magnate entered a bid for nation’s largest private landholding, S Kidman & Co, through joint venture company Australian Outback Beef Pty Ltd. Read more>>
China’s Football Dreams Help Developer Create Real Estate Riches
When President Xi Jinping made soccer a national priority two years ago, it was clear that he didn’t just want China to become a global powerhouse. He outlined a robust soccer economy, with fields in every county, soccer academies for kids, and fans in every local bar.
Buried in the finer points, Xi called for local governments to “promote the community with the construction of football venues” and for every new residential area to include facilities that can host five-a-side games. Now, says Reeze Fan, who has been building recreational soccer complexes in China since 2008, business is booming. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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