New HK Housing Rules Fuel Suspect Deals and More Asia Real Estate Headlines

Dubious sales lead the way in Mingtiandi’s roundup of Asia real estate headlines today with some strange trends in Hong Kong home sale prices leading some analysts to suspect fraudulent transactions being recorded to take advantage of new housing policies introduced last year.

In other news around the region, analysts expect Chinese investors buying US property to face heightened security amid an escalation in US-China tensions, while compulsory sales in Hong Kong are predicted to increase.

Elsewhere, a Chinese coffee chain that faked millions of dollars in sales last year has received a delisting notice from the NASDAQ stock exchange.

Spike in Hong Kong Flat Sales Raises Fraud Suspicions

A jump in the number of Hong Kong flats selling for exactly HK$10 million ($1.3 million) in recent months has raised suspicions about potential fraud, following a relaxation of mortgage rules for properties sold at that price.

Regulators loosened rules in October, allowing buyers to borrow up to 80 per cent on properties worth HK$10 million or less versus HK$6 million previously, but still only enough for small-to-medium flats in one of the world’s most expensive markets. Read more>>

Chinese Buyers of US Property Face Heightened Scrutiny

Chinese investors buying real estate in the United States can expect heightened scrutiny amid an escalation of US-China tensions, analysts said. They might also contend with a new filing fee of up to $300,000 imposed by the federal reviewing body.

The coming into effect of a new regulation that extends the Committee on Foreign Investment in the United States’ (CFIUS) scope to the review of even non-controlling stakes in US real estate could lead to a negative impact on Chinese and Asian investors. Read more>>

Hong Kong Developers Use Forced Sales to Acquire Redevelopment Sites

Some of Hong Kong’s ageing residential buildings are being snapped up for redevelopment through compulsory purchase orders amid a shortage of land in the city.

Billionaire Edwin Leong’s Tai Hung Fai Enterprise bought a 61-year old building in Sai Ying Pun while Hip Shing Hong acquired another old building in Shau Kei Wan on Wednesday. Read more>>

Hong Kong’s Central Trails Singapore, Tokyo and Seoul on E&Y Index

The higher score, however, was not enough to match its previous 11th ranking as three new entrants – Gangnam in Seoul, and the financial districts of San Francisco and Toronto – overtook Hong Kong.

It was not all bad news for the city, whose reputation and economy took a battering from months of violent anti-government protests last year. In another index released on Wednesday, Hong Kong was deemed the most resilient place in Asia, placing 19th globally in a list of 130 countries and territories. Read more>>

Hongkong Land to Issue $600M 10-year Notes Due in 2030

Hongkong Land Holdings’ subsidiary The Hongkong Land Company has priced $600 million of senior unsecured notes due in 2030, to be issued at a coupon of 2.875 per cent, payable on a semi-annual basis.

The notes – which have a maturity date of May 27, 2030 – are to be issued by the latter’s subsidiary – The Hongkong Land Finance (Cayman Islands) Company Limited, as part of the issuer’s guaranteed medium-term note programme. Read more>>

Cashed Up Global Property Buyers Wait for Sellers to Blink

The world’s biggest real estate investors are sitting on piles of cash, preparing for once-in-a-lifetime opportunities created by the Covid-19 pandemic.

With economies around the world sputtering, commercial real estate prices are expected to come down. How much they will fall, of course, is the key question. Read more>>

Luckin Coffee Shares Crash After NASDAQ Issues Delisting Notice

Luckin Coffee Inc’s battered stock faces a renewed wave of selling, after NASDAQ said it planned to delist the onetime market darling that shocked investors with revelations of accounting fraud last month.

The Chinese coffee chain’s shares, which have been suspended since tumbling more than 80 percent in early April, resumed trading at 7am in New York on 20 May. Read more>>

Tune in again soon for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.

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