The downdraft slowing Hong Kong’s home sales may have finally reached the city’s famously-expensive office market as one of the leading property consultancies is now predicting a drop off in office prices in Central in 2019. Also making news today, a Singapore-listed retail REIT buys a mall from its sponsor in the capital of China’s Anhui province and a state-run mainland investment firm is making a bid for a Moscow landmark of Sino-Russian friendship. Read on for the latest in real estate news from around the region.
Hong Kong’s Central district, the world’s most expensive office address, will see rents fall next year for the first time since 2013, according to Colliers International.
The tanking stock market, rising interest rates and the US-China trade war are all taking a toll on the confidence of financial firms, which make up the bulk of Central’s tenants, said the property services company. Read more>>
BHG Retail Real Estate Investment Trust (BHG Retail REIT) is buying a mall in China that was indirectly owned by the parent of the REIT manager, in a deal inked on Monday and announced the next day.
The REIT will pay 328.3 million yuan (S$65.2 million) for Hefei Changjiangxilu Mall, to be funded through borrowings, with the manager noting that the proposed acquisition is expected to raise distribution per unit (DPU) for the enlarged portfolio. Read more>>
HNA Group’s online investment platform outlined a plan to make delayed repayments to investors over 18 months or longer as the sprawling conglomerate’s liquidity crisis continues.
As of July, Jubaohui had raised a total of 713 million yuan ($103 million) by selling high-yield investment products, according to data from the platform’s website. Payments were overdue for many of those products as of July. The overdue payments reflect the continuing cash shortfall affecting the sprawling airlines-to-hotels conglomerate, which is one of China’s largest private enterprises. Read more>>
China’s Chengtong Holdings Group [SASACA.UL], a state-owned investment and asset-operating company, is in talks with Russian real estate developer Hals Development (HALS.MM) to buy the Peking Hotel in central Moscow, three sources familiar with the talks said.
VTB (VTBR.MM), which owns Hals Development, confirmed plans to sell the hotel and that it was talking to Chengtong Holdings Group and other potential buyers, adding it planned to reach an agreement before the end of 2018. Read more>>
CapitaLand on Wednesday (Nov 7) said it has held four successful residential launches in the past month, which coincided with “Golden September Silver October” – China’s traditional high season for new home sales.
In total, these four launches sold 1,506 units with a total value of about two billion yuan (S$396.7 million) – marking CapitaLand’s highest home sales value in China over a 30-day period this year. Read more>>
As Hong Kong’s property market turns south, homeowners of New Territories properties are feeling the pinch more than others, as flat prices in the area have fallen faster and as much as 16 per cent since August.
Among the area’s top five residential estates by price decline based on government data, City One Shatin is leading the pack and recorded the largest drop in the past two months. The average price for 10 transactions completed in October was HK$15,191 per square foot, 9.3 per cent down from September and 15.4 per cent from August, according to data from Ricacorp Properties. Read more>>