Pushback against a mainland-led investment boom plays into a number of stories dominating Asia’s real estate markets today, as decision-makers in Malaysia, Australia and New Zealand struggle to manage an influx of Chinese capital into their housing and commercial markets. Also in the news, another Singapore residential site was sold off for S$144 million, and the founder of a recently bought out construction firm found a way to spend S$21 million on Boat Quay without suffering liver damage. All these stories and more await you below.
In an interview with the South China Morning Post, newly re-elected Malaysian Premier Dr Mahathir Mohammed made clear that he had warm feelings toward China, but didn’t necessarily welcome all of its existing investments in the Southeast Asian nation. Among the 92-year-old politician’s top gripes were property developments such as Country Garden’s Forest City.
Mahathir said he believed housing units in the US$100 billion development project being constructed on artificial islands off Malaysia’s southern state of Johor were beyond the reach of most Malaysians, and were likely to be populated mostly by affluent Chinese nationals. Read More>>
Soilbuild Group Holdings has won the tender for the collective sale of Kemaman Point, a freehold 89-unit residential development in Balestier Road, with a bid of $143.88 million.
The marketing agent for the collective sale, Knight Frank, said each owner stands to receive between $1.4 million and $2.32 million. Read more>>
DBS Group Research likes AIMS AMP Capital Industrial REIT (AA REIT) for its diversified and in-demand portfolio, above-average yields and takeover possibility.
In a Tuesday report, lead analyst Carmen Tay says AA REIT is unique for its 600,000 sf of untapped gross floor area (GFA), which is one of the highest among peers. Given the prime location of selected properties, Tay believes the manager can potentially redevelop these sites into future-proof assets like data centres. Read more>>
While Australian political leaders are growing more concerned about the security and military threat posed by China, new research show the Australian people are more worried about the amount of farmland and real estate that Chinese citizens are buying in the country.
The 14th annual Lowy Institute poll into Australian attitudes found 72 per cent of Australians believe the government is allowing too much investment from China, up from 56 per cent in 2014. Read more>>
New Zealand’s government on Tuesday (June 19) softened its stance on foreign ownership of homes, rewriting a proposed law banning non-residents from investing in housing.
The amended law would allow non-residents to own up to 60 per cent of large, new apartment buildings. There is currently no ban on foreign ownership of land, houses or apartments. Read more>>
Wah Loon Engineering founder Alan Chong, whose company was recently bought out by global construction giant VINCI, has snapped up one of the tallest conservation shophouses along Boat Quay for S$21.35 million.
Spanning six levels, the shophouse has an estimated built-up area of 6,300 sq ft, according to information on the website of Clifton Partners, a real estate investment firm. The property is being sold by an affiliate of the company. Chong had earlier purchased a new freehold bungalow in Jervois Hill for S$41.2 million. Read more>>