China’s home prices continued to decline in February
Despite government support for the housing market, China’s home prices continued their decline in February, with that story leading Mingtiandi’s headline roundup today. Also making the list, family-run Gaw Capital targets logistics in Vietnam and Mexico and Hong Kong’s housing rebound begins to lose steam.
China Home Price Slump Persists Even as Support Mounts
China’s home prices continued to fall in February, underscoring the challenge for authorities as they step up efforts to salvage the beleaguered market.
Declines in prices of both new and used homes deepened in February from a year earlier, even as they eased slightly on a monthly basis, National Bureau of Statistics figures showed Friday. Read more>>
China’s Property Investment Declines Slow But Sector Still Shaky
China’s fragile housing market opened the year with slower declines in property investment and sales, buoyed by government efforts to arrest a protracted downturn in the sector, but analysts are wary of calling an end to the downturn just yet.
Property investment in China fell 9 percent year-on-year in the first two months of 2024, compared with a 24 percent fall in December 2023, National Bureau of Statistics data showed. Read more>>
Gaw Capital Bets on ‘China Plus One’ Opportunities in Vietnam and Mexico
Gaw Capital Partners, one of Hong Kong’s biggest real estate fund managers, is focusing on logistics in Vietnam and Mexico, as well as the artificial intelligence sector bailing out distressed office assets in the US, amid challenges to an economic recovery in mainland China.
The US-China trade tensions could continue to be an issue for the next 10 to 15 years, said Goodwin Gaw, the firm’s founder and managing principal. “I want to invest in countries that are the biggest beneficiaries of ‘China plus one’ (strategy),” Gaw said. Read more>>
Hong Kong Housing Rebound Starts to Cool as Weekend Sales Fall
Hong Kong’s home sales rebound is beginning to lose steam, if the weekend’s transactions at major estates are any guide.
Sales of secondhand apartments at the 10 biggest residential estates fell 24 percent after reaching a three-year high the previous weekend, according to Centaline Property Agency. Just 28 units changed hands, down from 37 a week earlier. Read more>>
Vanke’s Sales Drop Most Since 2018 Amid Mounting Liquidity Fears
China Vanke posted its biggest sales decline in six years, adding to the woes of the Chinese developer that’s trying to stave off its first-ever debt default.
Vanke’s contracted sales for February plunged 53 percent from a year earlier to RMB 14 billion ($1.9 billion), the Shenzhen-based company said. It was the biggest monthly slide since at least 2018, based on data compiled by Bloomberg. The value of homes sold by the company fell 28 percent from January. Read more>>
Amazon Plans to Build Its New Logistic Centre in Kanagawa, Japan
On Monday, according to market news, global e-commerce giant Amazon plans to build a new logistics facility in Kanagawa Prefecture, Japan.
This is the latest move by Amazon to continue to expand its logistics network in the Asian region. The move aims to improve Amazon’s fulfillment efficiency in Japan to meet the growing demand for online shopping. Read more>>
China Police Takes ‘Coercive Measures’ Against Staff at Zhongzhi
Chinese authorities said they took “criminal coercive measures” against some employees at the money management business of Zhongzhi Enterprise Group, weeks after a Beijing court accepted the shadow banking giant’s bankruptcy application.
Police in Beijing said the recovery of “stolen goods” is underway as it took action against suspects which included executives, according to a statement on WeChat on Saturday. They asked the company’s staff to actively cooperate with investigations and return all illegally obtained gains to a designated account, and urged investors to report wrongdoing or provide leads. Read more>>
UOL, SingLand Sell 31 More Watten House Units at Public Launch
Joint venture partners UOL Group and Singapore Land have sold 133, or 74 percent, of units at Watten House as of Saturday, following the sale of 31 units after the project’s official launch on 2 March. Of the units taken up, 102 were previously sold during an exclusive private preview last November.
The 133 units sold for an average of S$3,250 ($2,428) per square foot. Of the property’s eight exclusive penthouses, seven achieved prices ranging from S$11.7 million to S$14.5 million, or between S$3,440 and S$3,550 per square foot. Read more>>
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