Raymond Kwok of Sun Hung Kai had some discouraging words for investors on Friday
China’s housing recovery continues to reflect the broader economy, as first tier cities offering white collar jobs see home prices soar, while smaller communities continue to search for a way forward amidst a slumping manufacturing sector. Also, the world’s biggest retailer plans 30 new mainland stores, and Hong Kong’s biggest developers make plans for a challenging year. Read on for all this and more.
Shenzhen and Shanghai Home Prices Lead China Housing Recovery in January
China’s home prices rose for a fourth straight month in January with big cities leading the gains, suggesting an uneven recovery in the housing market as the government’s pro-growth policies gain traction.
The mild recovery in China’s housing market, which accounts for 15 percent of GDP, is the most visible example of policy supporting demand in the country, as the rest of the economy struggles amid wider restructuring and slowing global demand. Read more>>
Walmart to Open 30 More Stores in China
Walmart, the world’s largest retailer, will open 30 new stores in China in 2016, Walmart China president and CEO Sean Clark said Thursday.
Besides the 30 new stores, Walmart will upgrade 60 existing stores and expand its logistics and distribution centers. It will also introduce a cross-border e-commerce service in 2016, according to Clark. Read more>>
Sun Hung Kai Cuts Sales Target By 15% in HK Slump
Sun Hung Kai Properties (SHKP), Hong Kong’s largest developer by market capitalisation, said on Friday it may cut its HK$32 billion sales target for the year to June by as much as 15 per cent because global financial turbulence is damaging buyer sentiment.
That comes after Financial Secretary John Tsang Chun-wah insisted in his budget speech on Wednesday there was “no room” to scrap the government’s cooling measures on property prices, with many still finding it difficult to afford a home. Read more>>
Li Ka-shing’s Apartment Factory Expects Steady Sales
Cheung Kong Property Holdings Ltd. isn’t planning to alter its average pace of home sales in Hong Kong despite the property downturn, company executive director Justin Chiu said on Friday.
“We always look at ourselves as a factory, so every year we can release about 3,000 units to the market,” he said in an interview. “We hope to at least match last year’s figures in terms of units and even in turnover,” he said. Read more>>
HK to Offer First Grade-A Office Site in Central Since 1996
The first grade-A office site in Central to be offered for tender in 20 years is expected to fetch HK$9 billion, making it most valuable commercial site in the government’s land sale programme for the fiscal year to March 2017.
The prime office plot is one of the 40 government sites due to be offered for tender from April. Twenty-nine are residential plots with the potential to provide 19,200 new private flats. Read more>>
Vanke Raising Prices in Beijing as First Tier Cities Boom
China’s first-tier cities are likely to experience a real estate boom, and analysts believe the property market is off to a well-grounded start this year as property group China Vanke Co plans to raise its property prices in Beijing. Vanke, China’s largest residential developer by revenue, will increase the prices on two projects in southern Beijing, according to a project introduction advertisement by the company.
However, it did not disclose the range of increase. In Shanghai, meanwhile, the average price for new homes has grown by more than 10 per cent in the past two months, from 42,300 yuan ($6,470) to 47,000 yuan per square meter, as demand remains robust with supplies going fast. 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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