Nanjing and other second-tier cities have begun restricting home sales
Fewer mainland cities saw housing prices rise in June as home purchase restrictions spread into second tier cities. In Hong Kong, the office market may be headed down on sliding demand, while Shanghai’s housing market could face a shortage of supply as investment wanes. Read on for all these stories and more.
Purchase Restrictions Cool Down China Home Prices in June
The rally in the real estate market in China eased for the second straight month in a row as strict government measures governing mortgage norms curbed mortgage lending in some of the country’s biggest urban and suburban areas.
Among 70 major Chinese cities surveyed, 55 saw increases in new home prices between May and June. In May, there were housing price increases in 60 cities, data released by China’s National Bureau of Statistics showed Monday. Residential home prices in 10 cities fell between June and May, while only four cities reported price declines in May. Read more>>
Hong Kong Office Market Slows on Weaker Mainland Demand
After posting gains for the better part of the last two years, Hong Kong’s office market is nearing an inflection point as demand weakened through the first half of 2016. While extremely low vacancy rates have played a part in curtailing net take-up, office rents – which serve as a barometer of market health – also are showing signs of strain, with growth slowing and even declining in the city’s key office markets through the first half.
The fact that weakness is now starting to appear in the market should not be surprising. Outside of Central, rents have only managed to eke out moderate growth in recent years despite vacancies steadily declining across the market. Read more>>
Shanghai Seen Facing Housing Shortage
Property investment growth in Shanghaislowed in the first half of this year amid intense competition among developers for new land parcels in mainland China’s commercial capital, fuelling worries about a short supply of new homes.
Investment in real estate projects grew 8.7 per cent to 168.5 billion yuan (HK$195 billion) in the first six months of this year, compared to a 15.8 per cent year-on-year rise recorded in the same period of 2015, Tang Huihao, chief economist of Shanghai Statistics Bureau, told reporters at a press conference Monday. Read more>>
Poly Real Estate Profits Grow 21% in 1H
Poly Real Estate Group, one of China’s leading real estate companies, saw revenue and profit both grow in the first half of 2016 (H1), despite headwinds in the property sector.
Poly posted total profits of 9.79 billion yuan ($1.46 billion), up 21.3 percent from the same period last year, according to a statement on the Shanghai Stock Exchange on Sunday.
The Beijing-based company generated total revenue of 55.17 billion yuan, up 30.3 percent year on year, said the company. Read more>>
China Planning 20 Megacities to House 1B Urbanites
As you sail up the Yangtze river in China’s west, a towering skyline of lit skyscrapers and massive bridges emerges suddenly out of the mist. Carved out of the mountains of China’s southwestern provinces sits Chongqing, a municipality of 32 million people that local officials and residents sometimes describe as the biggest city the world has never seen.
If the growth of the world’s great cities in history has been powered by the often unplanned and spontaneous movement of people from the hinterlands, or even from across the oceans, by migrants who helped build the New Yorks and Mumbais, layer by layer, with their own dreams and ambition, the Chongqing experiment turned that logic on its head. It is perhaps the world’s first megacity that began to get built before the people had even arrived. Read more>>
Vanke NYC Partner Kept Mum on Dodgy Manhattan Deal
A representative for Slate Property Group warned the firm to keep quiet about its impending deal to buy 45 Rivington Street until seller Allure Group could pull off a controversial deed restriction removal, according to a new report from the city’s Department of Investigation.
“Do not discuss this deal,” the unidentified Slate representative wrote in an email dated May 14, 2015, according to the DOI report. “The seller is very concerned that the city and union will find out that [the seller] is in contract to sell at the price that we are buying it which will directly impact his ability to have the deed restriction removed.” 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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