Gaw Capital’s Goodwin Gaw see opportunities for acquisitions on the mainland this year
One of China’s most challenged real estate markets tries out a no money down policy on home sales, while housing prices in most of the biggest cities on the mainland continued to rise in February. Also, one of the region’s most active private equity real estate investors plans big acquisitions in China this year. Read on for all these stories and more.
Shenyang Proposes Nothing Down Homes For Graduates – But Not For Long
A Chinese city has unveiled an unorthodox plan to ease its property glut – but the proposal may be a bit too bold for the higher authorities’ liking.
This week, the city of Shenyang in northeast China grabbed eyeballs by suggesting that it plans to expand its pool of home buyers by removing the down payment requirement for fresh college graduates. Social media users hailed the plan as an attractive one but also said it also indicates how desperate Shenyang is in its quest to lower its huge inventory of apartments. Read more>>
Home Prices Rose in 61 Out of 100 Mainland Cities
THE cost of a new home rose again across China in February, the China Index Academy said in a report yesterday.
The average price of a new home rose 0.6 percent to 11,092 yuan (US$1,694) per square meter from a month earlier, after a 0.42 percent gain in January, said the academy, which tracked market activity in 100 cities across the country. Read more>>
Gaw Sees Acquisition Opportunities in Mainland Downturn
Investing cynics may be leery of China’s shaky real-estate market but one contrarian institutional real-estate investor is still making aggressive bets.
Hong Kong-based private-equity fund manager Gaw Capital Partners is planning to invest more in China’s major cities this year, even as the downturn in the commercial property market overall goes into its third year. The firm is on the hunt for underused properties that it can turn into trendy locations for shoppers, office workers and tourists. Read more>>
China Credit Expansion Inflating Home Prices in China’s Biggest Cities
After getting burned by the bursting of China’s stock-market bubble, Liu Yihui is seeking salvation from the country’s latest investment mania: big-city properties.
The 35-year-old civil engineer dumped his equity holdings after losing 40 percent last year, using the proceeds to buy a 5 million yuan ($763,464) apartment in Shenzhen. Prices in the southern business hub have surged more than 50 percent over the past year, the fastest pace since at least 2011. Read more>>
Guangzhou Planning to Welcome Home-Buyers from HK and Macau
Guangzhou is likely to become the first tier-one city in mainland China to lift home-purchase restrictions for buyers from Hong Kong and Macau, hinting at the mounting sense of desperation felt by the authorities in the world’s second-largest economy as they seek to speed up property destocking and boost economic growth.
A document containing 11 instructions released by the Guangdong provincial government on Monday night said Hong Kong and Macau buyers could enjoy the same benefits as locals in “eligible cities” in the province as part of its plan to clear the stock of 160 million square metres of unsold flats. Read more>>
DBS Vickers Predicts 15% Home Price Jump in Mainland Hubs
Property prices in first-tier mainland cities will rise 10 to 15 percent this year, following an 18 percent surge in 2015, amid supportive measures from the government, DBS Vickers (Hong Kong) Ltd. said.
Meanwhile, home prices in second and third-tier cities are expected to rise 5 percent, after a slide of 6 percent last year, research head Carol Wu Shu-yen told the Hong Kong Economic Journal.
However, shares of property counters will continue to be weighed by the depreciating renminbi and falling gross profit margins, Wu said. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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