Singapore Bungalow on the Market for $236M and More Asia Real Estate Headlines

A Singapore mansion owned by a local businessman leads today’s headline roundup, with the Nassim Road bungalow going back on the market at a sharply higher price after failing to sell five years ago. Also making the list, Li Ka-shing’s CK Asset prices new homes at below cost and fellow Hong Kong builder Sun Hung Kai Properties is hit with an outlook downgrade.

Bungalow on Singapore’s Nassim Road Back on the Market at $236M

A two-storey freehold conservation bungalow in Singapore’s Nassim Road owned by Hong Fok Corporation joint chief executive Cheong Pin Chuan is on the market again.

If met, the S$308 million ($235.5 million) asking price this time around — up from S$175 million in 2019 — will make it the biggest transaction in absolute price quantum in a good class bungalow area. Read more>>

Li Ka-shing’s CK Asset Prices Hong Kong Condo Project 20% Below Cost

CK Asset Holdings’ prices for a new batch of flats on the south side of Hong Kong Island are nearly at the same level as the previous phase, even as it expects property prices to rebound soon.

Li Ka-shing’s flagship developer priced the first 128 units at Blue Coast II in Wong Chuk Hang at an average price of HK$21,526 ($2,770) per square foot, or 2 percent lower than the first batch of 138 units in the project’s first phase in March. CK Asset previously said the project’s development cost was HK$28,000 per square foot, but the selling price is more than 20 percent lower. Read more>>

S&P Downgrades Sun Hung Kai Rating Outlook to Negative

Standard & Poor Global Ratings has downgraded the credit rating of Sun Hung Kai Properties from stable to negative while affirming the A+ long-term issuer credit rating for the Hong Kong developer.

The negative rating outlook reflects the rating agency’s expectation for SHKP’s margins and leverage to remain strained over the next 12-24 months. But it expects the company to temper land acquisitions and reduce debt such that the debt-to-EBITDA ratio falls to 3.5 or below over the period. Read more>>

China’s Country Garden Misses Target Date for Restructuring Deal

Chinese developer Country Garden Holdings has missed a self-imposed target date for getting key creditor support for terms of its restructuring plan, people familiar with the matter said.

The builder, whose default on US dollar debt a year ago underscored the depth of the country’s years-long property crisis, has not yet delivered a term sheet for its restructuring, according to the people, who asked not to be identified. That’s despite saying several months ago that it expected key creditor groups to agree on the terms by the end of September. Read more>>

Owners of Singapore’s Thomson View Condo Complex Mull 12% Price Cut

Thomson View’s tender for collective sale closed with no bids on 6 September, but owners of the condominium are looking to lower its reserve price from S$918 million to S$808 million ($702 million to $618 million) as they move into private treaty negotiations.

Around 60 percent of owners have consented to the reserve price, which is 12 percent lower, according to marketing agent Edmund Tie. Read more>>

Mainland Developers Said Walking Back Home Discounts After Sales Surge

Chinese developers cancelled discounts as sales rebounded during the “golden week” holiday, underscoring signs of improved sentiment in the market, as officials called for stability in housing prices.

Midea Real Estate Holding raised prices by 2 percent for its housing projects nationwide, starting from Tuesday, according to an official newspaper overseen by the Ministry of Housing and Urban-Rural Development. Read more>>

Hong Kong Housing Market Shows Signs of Recovery After Rate Cuts

Hong Kong’s slumping housing market has received a long-awaited boost from interest rate cuts and a stock market rally.

Sales of both new and used homes jumped in the past couple of weeks, prompting some analysts to predict a trough in residential prices that have tumbled to an eight-year low. Others see a tough road to recovery amid a persistent inventory glut and a weak economy. Read more>>

Beijing Pushes Local Governments, Banks to Support Property Recovery

As China marshals its resources to safeguard home deliveries and restore stability to its teetering property market, authorities are pushing local governments and financial institutions to provide essential funding for ongoing projects and build on a recent wellspring of positive momentum.

Tools like the “white list” should be carefully expanded to boost financing for struggling developers and tamp down wider market risks, the country’s Ministry of Housing and Urban-Rural Development and National Financial Regulatory Administration said at a joint video conference in late September. Read more>>

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