Six square metre apartments were going for $130k in Shenzhen
Leading today’s Asia real estate news, authorities in Shenzhen have stepped in to stop the sale of a group of illegal micro-flats as the southern Chinese city’s housing market continues to hyperventilate. All this housing enthusiasm has proved profitable for mainland developers, however, with the country’s top two home builders already exceeding RMB 200 billion ($30 billion) in sales so far this year. Read on for all these stories and more.
Shenzhen Bans Sale of 6 SQM Apartments After Online Uproar
Shenzhen authorities have invalidated the sale of a series of tiny 6 square metre flats costing 880,000 yuan each, saying the properties violated existing laws and regulations.
The move came after an online outcry after local media reported that 11 mini studio apartments, with floor areas ranging from 5.73 and 7.48 square meters located in the 15-storey Qiaocheng Shangyu building in the city’s Nanshan district, sold out in half a day on Saturday. Read more>>
Top 2 China Developers Pass RMB 200B in Sales for 2016
Sales of China’s two largest property developers have exceeded 200 billion yuan ($29.98 billion) so far this year, fueled by a huge housing boom.
In addition to Vanke Co Ltd, Evergrande Group and Country Garden Holdings Co Ltd, two other property giants－Greenland Group and Poly Real Estate Group Co Ltd－will also see a similar breakthrough in sales this year, and more property developers will meet the sales target of 100 billion yuan, expert say. Read more>>
Hefei Homes Now a Thing as China Housing Boom Rolls On
Cash-rich investors are flocking to buy homes in Hefei, the capital of eastern China’s Anhui province, amid speculation the city may roll out measures to curb a surge in speculative non-local buyers which has pushed new home prices sky-high.
The city’s property sector is also suffering, like many in China, from spiralling prices being paid by developers for government land being sold by local authorities over the past year to increase revenue. Read more>>
Anbang Close to Completing $6.5B Hotel Deal with Blackstone
Anbang Insurance Group Co. completed most of its $6.5 billion acquisition of Strategic Hotels & Resorts Inc, helping to bolster the Chinese company’s credibility as a global buyer after its abrupt withdrawal from the bidding war for Starwood Hotels & Resorts Worldwide Inc. earlier this year.
The insurer bought 15 of Strategic’s 16 properties, according to people with knowledge of the deal. It’s the second-largest U.S. acquisition by a Chinese buyer, after the $7 billion sale of Smithfield Foods Inc. to Shuanghui International Holdings Ltd. — now known as WH Group Ltd. — in 2013, according to data compiled by Bloomberg and New York-based research firm Rhodium Group. Read more>>
Keppel Raises Stake in Vietnam Developer to 45%
Keppel Corporation Limited said that its property unit Keppel Land Limited has agreed to acquire 25 per cent stake in Quoc Loc Phat Joint Stock Company (QLP) for 412.33 billion dong (S$25.6 million), raising its effective stake to 45 per cent.
The sale and purchase agreement was inked between Keppel Land’s wholly owned subsidiary Orbista Pte Ltd and Pham Quang Hung, a shareholder of QLP. Read more>>
Moody’s Says 2nd-Tier City Rebound Could Bring More Policy Moves
Moody’s Investors Service says that home prices for China’s (Aa3 negative) 70 major cities extended their rising trend in August 2016, a development that could attract further regulatory tightening in some second-tier cities.
“Robust price growth in Hangzhou, Xiamen, Wuhan, Nanjing, Zhengzhou and Suzhou in the past 6-9 months triggered regulatory tightening in their residential property markets in August and September this year” says Franco Leung, a Moody’s Vice President – Senior Credit Officer. 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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