Ikea will spend big to enhance and integrate its China assets and carry out building work (Getty Images)
In today’s roundup of regional news headlines, furniture giant Ikea pledges a substantial investment in China over three years, and Guangzhou takes cues from the central government with a planned relaxation of mortgage rules. Also, several Chinese banks are reportedly heeding Beijing’s call to cut mortgage rates, but some economists remain sceptical of the economic impact.
Ikea to Invest $864M in China Over Next Three Years
Ikea said it plans to invest RMB 6.3 billion ($864 million) in the Chinese market over the next three years to enhance and integrate its existing assets and carry out building work.
The Swedish furniture giant also intends to cut the prices of more than 300 product categories, mainly home storage and popular consumer items, in fiscal 2024, Ikea China said at a fiscal-year launch event on Tuesday. The retailer will also offer free delivery and payment by instalment, it said. Read more>>
Guangzhou Eases Mortgage Rules as China Ramps Up Property Revival Efforts
Guangzhou on Wednesday became the first major Chinese city to announce an easing of mortgage curbs as the government ramps up efforts to revive the crisis-hit property sector and shore up the sputtering economy.
The decision comes as some Chinese state-owned banks are expected to lower interest rates on existing mortgages, three sources familiar with the matter said Tuesday, in the first such cut since the global financial crisis. Read more>>
China’s Mortgage Rate Cuts Fall Short of ‘Game Changer’ Policies
China’s anticipated cut to rates on existing mortgages marks one of the most concrete actions yet to boost the beleaguered economy, though it likely won’t be enough on its own to shore up growth.
That’s according to several economists after Bloomberg News reported Tuesday that the nation’s largest lenders are preparing to cut interest rates on existing mortgages and deposits. Read more>>
Chinese Banks Lean Towards Mortgage Rate Cuts, Heeding Beijing’s Call
Several Chinese banks have made pledges to cut mortgage rates, answering Beijing’s call to make homes more affordable and help arrest a multi-month slump in the nation’s housing market, according to various reports, a move that analysts said will have a big impact on lenders’ net interest margins.
The pledges follow the central bank’s indication that it would guide commercial banks to adjust existing mortgage rates in its quarterly monetary policy report, which analysts interpreted as a sign that reductions in borrowing rates are forthcoming. Read more>>
Singapore’s HDB, Condo Rents Continue Uptrend as Leasing Volumes Climb
Singapore’s condos and Housing and Development Board flats continued to see healthy leasing demand in July, with both rents and rental volume rising during the month.
Condo rents rose 1.1 percent from the previous month, based on flash estimates from SRX and 99.co released Wednesday. Overall rents were up 21.6 percent year-on-year. Read more>>
In High-Rise-Happy Singapore, $4.2M Single-Family Home Bucks Trend
A single-family home is the exception to the rule in high-rise Singapore, where most of the city-state’s 5.5 million residents live in apartments. So when it came time for Mark Tan and Stella Gwee to trade in their starter bungalow for something larger and grander, they decided to stay put, tear down and begin again on their rare 1/10th acre lot.
In 2009, Tan and Gwee paid S$2.2 million, or about $1.6 million, for their original 1,500 square foot (139 square metre) house, located in a single-family enclave in northeastern Singapore. The couple then spent $2.6 million to replace the three-bedroom, semi-detached structure, built in a Balinese-fusion style, with a four-storey, seven-bedroom brick house that combines Asian and Western elements across 7,400 square feet. Read more>>
Sale of Japan’s Sogo & Seibu to Fortress Investment Triggers Rare Worker Strike
Seven & I will sell department store unit Sogo & Seibu on 1 September, a source with direct knowledge of the matter said Wednesday, triggering a plan for a walk-out at a flagship store in what would be Japan’s first major strike in decades.
Japan-based Seven & I, operator of the world’s largest convenience store chain, agreed last year to sell loss-making Sogo & Seibu to US-based Fortress Investment Group, but the deal has been delayed amid opposition from workers. Read more>>
Housing Prices Rise in 43 Indian Cities
Housing prices rose in 43 Indian cities in the most recent quarter, while the rates of residential units fell in seven cities, according to National Housing Bank.
Ahmedabad witnessed a 9.1 percent appreciation in property prices while Bengaluru saw a 8.9 percent rise and Kolkata a 7.8 percent climb during the April-June period. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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