In today’s roundup of regional news headlines, a Knight Frank report says Singapore’s outbound property investment was up big in the third quarter, Hong Kong real estate agencies sue debt-saddled Evergrande for overdue commissions, and CBRE detects improving investor sentiment towards hotels.
Singapore recorded S$5.2 billion ($3.8 billion) in outbound real estate investment deals in the third quarter of this year, representing 53.9 percent growth from the S$3.4 billion transacted in the same period last year, according to Real Capital Analytics data.
The findings were highlighted in a report by Knight Frank analysts on Tuesday. Analysts said that Singapore as a “key exporter of capital” made significant outbound deals such as the acquisition of One Town Center, an office building in Florida, for around S$133.9 million by Prime US REIT in July, as well as the purchase of an office building in Barcelona by IREIT Global for about S$43.1 million last month. Read more>>
China Evergrande’s debt crisis is starting to infect Hong Kong’s property market as a local real estate agency group sued to recover overdue commissions from two housing projects in the city, according to court filings.
Midland Realty International and Hong Kong Property Services (Agency) are claiming HK$43.45 million ($5.6 million) from the Chinese developer for fees related to the sale of 398 flats at Emerald Bay in Tuen Mun and The Vertex in Cheung Sha Wan. Read more>>
Chuan Park Condominium at 240-250 Lorong Chuan in Singapore has been put up for collective sale via public tender at an indicative price of S$938 million ($691 million), said marketing agent ERA.
Spanning 400,589 square feet (37,216 square metres), the property has a gross plot ratio of 2.1 and an achievable proposed gross floor area of 841,236 square feet. This amounts to about S$1,042 ($768) per square foot per plot ratio, including the 7 percent bonus GFA. Read more>>
Mainland developer Kaisa Group recorded contracted sales of RMB 5.7 billion ($884 million) with a contracted gross floor area of 305,760 square metres (3,291,173 square feet) in September.
Total contracted sales of the company for the first nine months rose nearly 33 percent year-on-year to RMB 87.55 billion, with total contracted GFA rising 34.2 percent to 5.16 million square metres. Read more>>
Even before China Evergrande Group’s debt crisis sent the country’s property sector into a tailspin, Chinese property firms were struggling to earn enough to make interest payments on their debt, data show.
At the end of June, the aggregate interest coverage ratio of 21 big Hong Kong-listed Chinese real estate developers fell to 0.94, the worst in at least a decade, according to Reuters calculations based on Refinitiv data. The ratio — of a company’s interest expenses to earnings before interest and tax — was 1.47 at the end of last year. Read more>>
Investor sentiment towards hotels has improved in recent months following a challenging 12 months after the onset of the pandemic, CBRE said in an update on investment figures for Asia Pacific hotels for the first half of this year.
Regional hotel transaction volume reached $2.3 billion in Q2 2021, representing a decline of 5.1 percent from the first quarter. Japan, mainland China, Korea and Australia accounted for the bulk of sales volume during the quarter. Read more>>
Southeast Asia will continue to see significant investment in digital infrastructure and data centre development, with the region becoming one of the fastest-growing data centre hubs globally, Fitch Solutions said in a report Tuesday.
Singapore will remain the key regional data centre hub over the coming years, though the pace of growth will start to slow over the medium to longer term due to increasing capacity constraints and rising competition from regional neighbours. Read more>>