Goldman, MS Expect China Housing Misery to Persist and More Asia Real Estate Headlines

Two of the world’s biggest investment banks expect commitments to China’s housing sector to continue to slide in 2024, with that story leading Mingtiandi’s final roundup of real estate headlines for the year. Also in the news, mainland developer KWG will be starting the new year with a fresh auditor after EY resigned and China Oceanwide says it is required to de-list from the Shenzhen exchange.

Goldman, Morgan Stanley Expect China’s Housing Slump to Persist

The slump in China’s housing construction will continue in 2024, dragging down economic growth and suggesting that government efforts to stabilize the sector haven’t been enough to reverse the downturn.

That’s the consensus from 10 investment banks and securities brokerages, including Goldman Sachs Group Inc., Morgan Stanley and UBS Group AG. Read more>>

China’s KWG Group Replaces Auditor After EY Resigns

KWG Group Holdings announced that their auditor Ernst & Young resigned as their auditor effective on Tuesday.

Following the resignation of EY, Prism Hong Kong and Shanghai Limited will take place as the new auditor of the company to fill the casual vacancy and hold office until the conclusion of the next annual general meeting of the company. Read more>>

Oceanwide Faces De-Listing From Shenzhen Exchange

Mainland developer China Oceanwide announced to the Shenzhen bourse on 27 December that the closing price of its stock had dropped for 20 consecutive trading days (since 30 November) while being priced at less than RMB 1 ($0.14) per share.

Under the rules of the Shenzhen stock exchange the company now faces mandatory de-listing and, in the same announcement, Oceanwide said that it had suffered a loss attributable to shareholders of RMB 6.89 billion during the first three quarters of the year its net liabilities outweighed its net assets by RMB 12 billion for the period. Read more>>

Funds Bet on Recovery in Asian Junk-Rated Credits as Defaults Peak

Asian junk bonds could be the surprise package for credit investors in 2024 as the worst of bond defaults has passed and global borrowing costs decline, some money managers said. A turnaround may be imminent as losses in funds that invest in the asset class narrowed in recent months.

Investors are betting that the Federal Reserve will lower borrowing costs next year, helping ease funding strain and liquidity stress for junk-rated borrowers including Chinese developers. That should refuel risk appetite, making the asset class ripe for a rebound after a three-year slump, they added. Read more>>

Hong Kong Home Prices Slump to Lowest in 7 Years

The housing market in Hong Kong continued to decline, with prices in November falling for the seventh month in a row to their lowest level in almost seven years, according to government data.

Property agents said house prices would continue to decline in December as the city’s slowing economy and high interest rates undercut demand. Read more>>

Singapore Residential Rents Slid Again in November

Singapore condominium rental prices and volumes continued to fall in November, marking the fourth consecutive month of decline. The Housing and Development Board rental market, however, showed signs of a slight recovery.

Based on flash data from SRX and 99.co released on Wednesday, condo rental prices dropped 1.4 percent from the previous month, led by a fall in rents in both the Core Central Region and Rest of Central Region. Read more>>

Chinese State Developers Stiff Suppliers Despite Govt Edicts

For two years, Richard Zhang has travelled to Shenzhen every few months. It is a trip many make, usually to spend leisure time in the gleaming metropolis, built in decades and a monument to China’s rapid development.

But he is no tourist. He has travelled across Guangdong province from the capital of Guangzhou to demand a state-backed construction and development firm pay what he is owed. Read more>>

Philippine Bank Completes Buyout of Keppel Stake in Manila Complex

BDO Unibank Inc. announced that it has completed its buyout of the interests of Keppel Philippines Properties Inc. and Opon-KE Properties Inc. in SM Keppel Land Inc.

In a disclosure to the Philippine Stock Exchange, the bank said this follows the announcement last 27 March 2023 of the Keppel Group’s decision to divest its stake in SM Keppel. Read more>>

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