China Home Sales Slump Continued in July and More Asia Real Estate Headlines

China’s residential slump deepened in July, with that story leading Mingtiandi’s headline roundup today. Also making the list, a Hong Kong mansion sells for 60 percent of the asking price and China’s Gemdale unloads a Seattle apartment tower for $174 million.

China Home Sales Slump Continued in July Despite Rescue Effort

China’s residential real estate slump deepened again in July despite the country’s most forceful efforts yet to support the property market.

The value of new home sales from the 100 biggest real estate companies slumped 19.7 percent from a year earlier to RMB 279 billion ($38.6 billion), faster than the 17 percent decline in June, according to preliminary data from China Real Estate Information. Transactions dropped 36.4 percent from June after showing a notable increase in April and May. Read more>>

Hong Kong Mansion Changes Hands at 60% of Asking Price

A mansion in Hong Kong has been sold for HK$360 million ($46 million), or about 60 percent of what agents estimated, adding to a growing list of luxury properties trading at heavy discounts.

A house at 8 Purves Road, located in Wan Chai’s Jardine’s Lookout area, has been sold to an entity called Talent Ample, according to land registry records. The property is a two-storey detached house with a site area of about 912 square metres (9,817 square feet). Read more>>

China’s Gemdale Sells Seattle Apartment Tower for $174M

A luxury apartment building in Seattle’s South Lake Union traded hands recently. The 338-unit property known as Skyglass was sold by an entity affiliated with Gemdale USA, which also developed the asset, for $173.8 million, or $514,201 per unit, according to public records. The buyer was an entity that shares an address with Goldman Sachs.

Located at 222 Dexter Avenue North, Skyglass is a 31-storey structure that offers studios and one-, two- and three-bedroom apartments, according to the property’s website. Designed by Hewitt, the building’s most notable feature is its undulating glass tower with a facade that reflects light and weather, creating a constantly shifting appearance. Read more>>

Japan Set to Raises Mortgage Rates for Second Time in 17 Years

The Bank of Japan’s second interest rate hike in nearly two decades is set to impact millions of personal mortgages, raising borrowing costs for homebuyers for the first time in a generation.

Mitsubishi UFJ Financial Group, Japan’s largest bank, said it plans to increase the short-term prime rate for the first time in 17 years in September after the central bank’s move Wednesday. Other lenders are expected to follow. About 75 percent of personal mortgages in Japan are floating-rate loans tied to the short-term prime rate set individually by banks. Read more>>

Hong Kong Court Adjourns Shimao’s Liquidation Petition

Embattled Chinese developer Shimao Group said Wednesday that a Hong Kong court had adjourned until 12 August a liquidation hearing against the company, allowing it more time to work with creditors on a revised restructuring proposal.

Many Chinese developers are facing liquidation lawsuits by creditors since the sector slipped into a debt crisis in 2021, with a handful, such as industry giant China Evergrande, ordered liquidated. Read more>>

India’s Adani Set to Bid for Delhi Developer

India’s Adani Group is reportedly planning to bid for Jaypee Group’s real estate portfolio. This potential acquisition, which is currently under review in insolvency proceedings, could see Adani invest up to $1 billion to acquire Jaypee’s different assets, which include apartment complexes, villas and golf courses, according to a Mint report citing familiar sources.

Jaypee Group is currently entangled in one of India’s largest bankruptcy cases, with over INR 500 billion ($5.9 billion) in outstanding bank loans. The Adani Group is preparing to submit a substantial bid, which is anticipated to be part of a “comprehensive packaged offer” designed to address the demands of creditors involved in the insolvency proceedings of Jaiprakash Associates, the flagship company of Jaypee Group, according to the report. Read more>>

Hong Kong’s Centaline Turns to Family Offices as Market Slump Continues

One of Hong Kong’s biggest property agencies is expanding its family office services, as it looks for new avenues of growth amid a downturn in real estate.

Centaline Wealth Management, a subsidiary of Centaline Group, is seeking to manage $1 billion in assets on behalf of rich clients within 12 months, Kelly But, the founding partner of the family office division, said Wednesday. The company is trying to use its real estate network to tap clients who have $3 million to $5 million in assets, But said. Read more>>

Singapore Industrial Rents Rose Again in Q2

Prices and rents of Singapore industrial space rose in the second quarter of 2024 but rental growth slowed, JTC’s quarterly market report showed.

Industrial rents climbed by 1 percent from the first quarter, down from the 1.7 percent rise in Q1; year-on-year, second-quarter rental growth was 6.6 percent. Read more>>