Mapletree CEO Hiew Yoon Khong is focusing on recurring earnings
Average home prices in China rose for the 10th straight month, according to a newly published report, but some analysts expect the rally could end as early as this quarter. Regionally, the slow-down in China’s overall economy is hurting builders of warehouses and other real estate investment firms. Read on for all the details.
Mainland Home Prices Rise for 10th Straight Month
New home prices on mainland China rose in May — a tenth consecutive month of increases and to post growth on an annual basis.
Prices of new homes in the 100 biggest Chinese cities rose an average 10.34 per cent year-on-year to 11,662 yuan (HK$13,757) per square metre last month, the fastest growth since August, research firm China Real Estate Index System (CREIS) showed on Wednesday. Read more>>
Net Profit Falls as Mapletree Investments Focuses on Long Term Returns
Mapletree Investments yesterday reported lower profit for its last financial year as earnings took a hit from lower revaluation gains that reflected the challenging business environment.
Still, its underlying performance remained strong as very positive signs emerged for the property group, with growth in its recurring income and ongoing investments in overseas markets. Read more>>
REITs Still Out of Reach for Chinese Investors
Mainland Chinese property companies have for years longed to join the hundreds of real-estate companies throughout the world structured as real-estate investment trusts.
The wait is likely going to be longer partly because of the cooling of the Chinese economy.
While China’s securities regulators have been in favor of allowing REITs, they have been facing pushback from tax officials, who are worried about the impact on revenues. Read more>>
Yuzhou Properties Raising Sales Target After Strong Results in 2016
Yuzhou Properties (1628) will raise its full- year target sales as contracted sales hit 8.12 billion yuan (HK$9.58 billion) for the first four months this year.
Sales during January-April reached 10 billion yuan, or 62.5 percent of the annual target of 16 billion yuan set at the start of the year.
Sales in the Yangtze River Delta made up 70 percent of total revenue. Chairman Lam Lung-on is confident about the property market in first-tier cities due to massive population influx, leading to steady price increases. Read more>>
China Housing Rally Could End This Quarter Say Experts
The recovery in China’s housing market may be fragile, with the current cyclical rally likely to end by the second or third quarter of this year as prospects diminish for further strong stimulus and selective regulatory tightening drags on demand, analysts say.
The property market had a strong start to the year, with robust demand driving home sales on the back of a rapid expansion in credit, but the recovery may not be sustainable, said Barclays’ analysts. Read more>>
China Slow-Down Hits Regional Real Estate Investors
China’s receding growth rate is taking its toll on listed real-estate companies throughout the Pacific Rim region.
For example, Hong Kong-based developer Sun Hung Kai Properties Ltd. , which pushed hard into residential development in mainland China in recent years, has seen its shares plummet 31% in the past 12 months. A similar plunge in shares has been suffered by Singapore-listed Global Logistic Properties Ltd., the largest warehouse operator in China, which made a big bet on online retail. 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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