The HKMA’s Norman Chan says Hong Kong’s banks are just fine
With China’s residential market going into a centrally ordered deep freeze, there are signs that Singapore may be an unexpected beneficiary, as news headlines this week carry stories of rebound in developer stocks and growing demand for housing sites. Also in the news, a mainland developer wins with a suburban Sydney project, and there’s much more if you just keep reading.
Property Stocks Lead Singapore Market in 2017
Singapore property stocks are set for their best annual performance in five years, and strategists believe the rally is far from over.
With an expected pickup in real estate following the easing of housing curbs, developers are expected to be the bright spot in Singapore equities as gains in the city-state’s stocks may be limited for the rest of the year. Read more>>
Hong Kong’s Banks Said Well-Equipped for a Property Downturn
Hong Kong’s banks are better prepared than 20 years ago for a crash in the property market – even amid the world’s costliest apartments – because they are better capitalised and less exposed to real estate loans after the regulator forced them through eight rounds of mortgage tightening measures, the Hong Kong Monetary Authority’s chief executive said.
“[While] nobody can predict when the next crisis will arrive, Hong Kong’s financial sector is now well prepared for that,” Chan said in an interview with the South China Morning Post. Read more>>
Redevelopment Deals Show the Return of SG’s Residential Market
Chalk up another sign Singapore’s housing market is recovering: redevelopment deals are back.
After slowing to a trickle the past three years as housing prices fell, four redevelopment deals — where a group of owners band together to sell entire apartment blocks at a hefty premium — have been struck already this year, with a combined value of S$1.5 billion ($1.1 billion). The process, also known as “en-bloc” sales, allows developers to knock down and rebuild in a city where new residential land sales are tightly controlled by the government. Read more>>
Foshan Housing Market Continues to Rise Despite China’s Deep Freeze
Prospective home buyers flocked to an Evergrande housing project in Foshan, a mid-sized city close to Guangzhou, on the weekend, indicating that optimism towards the residential market remains buoyant in spite of recent home buying restrictions.
On Friday afternoon, the sales office of Evergrande Joy Town near Qiandeng Lake in the Nanhai District of Foshan attracted dozens of prospective buyers in what was largely an information gathering exercise. Read more>>
China’s Dahua Scores a Hit with Suburban Sydney Project
Dahua Group Australia’s New Breeze masterplanned community in Bardia has become one of the fastest selling project in the South West, achieving 500 land sales valued at $227.6 million. New Breeze Sales Manager Jesse Johnson said location, infrastructure and price drove the land sales result – the fastest in the past 14 months.
“Dahua deliberately purchased this land parcel in 2014 as a direct result of its position directly across the road from Edmondson Park Train Station and the future Edmondson Park Town Centre,” he said. Read more>>
Everbright Highlights Risk of Mainland Financial Contagion
Connectivity within the Chinese banking system is growing, a new report has warned, increasing financial contagion risk across the sector as a whole, if any companies were to suffer serious distress.
The study, by top Chinese securities company Everbright Securities, released on Wednesday, highlighted national joint-stock commercial banks, as well as some city commercial banks, as accounting for 40 per cent of such “interrelated assets”, which grew at a compound annualised pace of 23 per cent through 2014-16 to reach a value of 40 trillion yuan (US$5.88 trillion). Read more>>
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