China Vanke is facing another challenge as it seeks to boost liquidity
The ongoing challenges facing China Vanke lead Mingtiandi’s May Day collection of real estate headlines as the mainland giant tries to reassure investors of its path to profitability. Also in the news, negative equity mortgage hit a 20-year high in Hong Kong and Singapore gets ready to roll out a new residential estate.
China Vanke to Exit Non-Core Businesses, Divest Assets for Liquidity
China Vanke will exit non-core operations and divest assets as the developer seeks to boost liquidity amid the sector’s unprecedented downturn, according to a memo from a shareholder meeting on Tuesday.
The company will “trim down” and adjust its model for raising money, Chairman Yu Liang said in the meeting. It will also exit all businesses except for the three main operations, which focus on property development, real estate management services and rentals. Read more>>
Hong Kong’s Negative Equity Mortgages Rise to 20-Year High
Cases of negative equity in Hong Kong’s residential mortgage loans rose 27 percent in the first quarter from the previous one to the highest in 20 years, the city’s de facto central bank said.
Hong Kong’s private home prices have fallen for 10 consecutive months before edging up in March, after the financial city lifted curbs to boost the ailing property market. Read more>>
Singapore’s URA Prepares New Residential Estate Site in Fernvale North
Several large parcels of land have been earmarked for residential use in Fernvale North, a housing estate set to take shape in Sengkang.
The massive site will be bounded by Jalan Kayu, Fernvale Street, Anchorvale Street, Sengkang West Drive and the Tampines Expressway. It will be near two LRT stations – Kupang and Thanggam – as well as Sengkang Riverside Park. Read more>>
Strained Chinese Cities Struggle to Pay Home-Buying Subsidies
Amy Wang was counting on a RMB 100,000 ($13,810) subsidy promised by authorities in the eastern Chinese city of Weifang to fit and furnish an apartment she bought two years ago. Still waiting for the money, she is yet to move in.
The 30-year-old now pays RMB 6,000 of her 8,000 monthly salary on the mortgage for the RMB 1.1 million apartment and another RMB 1,800 to rent another one, relying on her parents for other basic expenses. Read more>>
China’s Leaders Hint at New Plan to Fix Property Market
China’s ruling Communist Party vowed to explore new measures to tackle a protracted housing crisis, which remains the biggest drag on the nation’s economy, and hinted at possible rate cuts ahead.
Officials will research ways to deal with unsold properties, as well as “make flexible use” of tools to support the economy and lower overall borrowing costs, a meeting led by Chinese President Xi Jinping agreed, the official Xinhua News Agency reported Tuesday. Read more>>
China Home Sales Fall Again in April Despite Official Support
China’s home sales continued to fall in April, underscoring why top policymakers are stepping up efforts to revive the market.
The value of new-home sales from the 100 biggest real estate companies slid about 45 percent from a year earlier to RMB 312.2 billion ($43.1 billion), following a 46 percent decline in March, according to preliminary data from China Real Estate Information Transactions fell 13 percent from March. Read more>>
China Developer Fantasia Proposes New Restructuring Terms, Shares Rise
Embattled Chinese developer Fantasia said on Monday that it has entered into a new agreement with its ad hoc group of bondholders to restructure its $4 billion bonds with new notes and equities.
The latest restructuring terms offered by the Shenzhen-based developer, which defaulted its offshore bonds in late 2021, were seen revised down from its first proposal published in early 2023, according to the term sheets published on Monday evening. Read more>>
Rental Yields Soar in Indian Cities; Bengaluru Tops the List With 4.5% in Q1
Average rental values in top Indian cities have soared in the first quarter of 2024, with the country’s IT capital Bengaluru topping the list with a rental yield of 4.45 percent in the quarter, an industry report said.
Mumbai came second with a rental yield of 4.15 percent and Gurugram, in the Delhi NCR (National Capital Region) was close behind with a rental yield of 4.1 percent in Q1 2024, the report by Anarock, a leading real estate consultancy operating in India and the GCC, showed. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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