In today’s roundup of regional news headlines, Japan’s Mitsui completes the disposal of a California apartment project, Chinese developer Shimao issues a warning as sales slump, and northern Hong Kong villagers cry foul over plans to convert ancestral land into public housing.
Mitsui & Co announced recently that its wholly owned US subsidiary, MBK Real Estate, completed its sale of the Artesa at Menifee Town Center project in Menifee, California to MG Properties Group for $156 million, with that deal having closed on 28 October.
The transaction is among the largest multi-family deals ever in California’s Inland Empire region, according to Mitsui, which has now developed 11 projects in the state since its MBK unit entered the build-to-rent market in 2012. With 2,900 units now developed, MBK has sold five of its projects. Read more>>
Chinese developer Shimao Group has told investors its sales this year will be 12 percent below target due to a national credit tightening, and it could consider selling assets, investors told Reuters.
Shares and bonds issued by the nation’s 13th-biggest property developer by sales have sold off on concerns about a deepening liquidity crisis in the Chinese property sector. Read more>>
Not even state-owned firms are safe from the deepening rout in Chinese developer bonds.
Sino Ocean Group Holding, part-owned by China’s finance ministry, has become the latest property company to see its bonds slump. Its 4.75 percent note due in 2030 fell Monday to as low as 73.48 cents on the dollar, with spreads over comparable Treasuries widening to a record 800 basis points, according to data compiled by Bloomberg. Read more>>
One of China’s biggest developers is significantly upping the amount of office space it is building across three enormous developments in Vauxhall and Nine Elms to capture changing demand for property in the area.
R&F now plans to build 650,000 square feet (60,387 square metres) of offices as part of the 4.4 million square feet it is developing on the southern bank of the Thames. That amounts to 30 percent more than when the schemes were originally conceived. Read more>>
Villagers in Hong Kong’s rural north are unconvinced by a government plan to convert their ancestral land into much-needed public housing, with some accusing the authorities of favouring developers’ interests at their expense.
Some preferred to build homes on the land for themselves, while others said the complex ownership structure would make the government plan impractical. Read more>>
China’s most populous province, Guangdong, said Friday that its two biggest metropolises, Guangzhou and Shenzhen, must allocate at least 10 percent of their land for rental housing to meet rising demand for homes, especially among the young.
Under proposed new rules, rental housing will focus on the development of homes no larger than 70 square metres (753 square feet) in area for new residents and young people. Additionally, the rents they pay must be lower than the rents of other properties in their neighbourhood, the Guangdong government said in a document. Read more>>
Hong Kong buyers are betting on an uptick in the city’s housing market amid plans to reopen the border with mainland China by next February, according to analysts, as results of home sales on Sunday were mixed.
As many as 116 flats, or 42.6 percent, of the 272 total units on offer at The Arles — a project by local developer Centralcon Properties located near the Fo Tan subway station in the eastern New Territories — were sold on Sunday, according to agents. The flats that were snapped up were each sold at a 15 percent discount, priced at around HK$20,905 ($2,686) per square foot. Read more>>
A weekend sale of tiny flats in Hong Kong’s New Territories got off to a brisk start, auguring well for the proposed Northern Metropolis residential enclave near the city’s northern border with Shenzhen.
CK Asset sold all 200 apartments through open sales in the first batch of sales at its #Lyos project in Hung Shui Kiu as of 8.30pm, with more than 7,500 registrations of interest, translating to 36 bids for every available unit, while 20 flats were reserved for sale by tender. Read more>>