First-half financial results have begun to be tallied for the mainland’s cohort of property developers, and many analyst expect the figures to show the growing dominance of state-run companies in the sector. Also in the news, less than a year after hiving off his property assets into a separate company, billionaire Li Ka-shing says his Cheung Kong Properties may branch out into other businesses, plus many more stories if you just read on.
Some of China’s biggest property developers are likely to report highly divided first-half results in coming days, with analysts predicting state-owned firms are set to lead the gains.
“Margins will be diversified as they reflect home sales in the second half of 2014 and the first half of 2015 [revenues are booked a year after the pre-sales stage in China] when the market was struggling and many developers slashed prices for the sake of sales,” said Raymond Cheng, a property analyst at CIMB Securities. Read more>>
Cheung Kong Property Holdings, Li Ka-shing’s property flagship, is spreading its net globally for opportunities in other business areas, given the challenges it faces in identifying investments with reasonable returns in the current cyclical stage in the property market.
The shift was revealed after Hong Kong’s second-largest developer reported underlying profit, excluding a revaluation gain in investment properties, rose 51 per cent to HK$8.33 billion for the first half of the year, the company said in an exchange statement. Read more>>
Sime Darby Bhd, which owns large tracts of land in Negri Sembilan and Johor, is looking to catch a ride on the high-speed rail (HSR) network. It is already in talks with MyHSR Corp – the project delivery company – about the development potential of its land surrounding the proposed stations in Labu, Seremban and Pagoh.
“With the development of infrastructure in the vicinity of our land, Sime Darby will review the current use of the land to ensure that we take advantage of the opportunities available to us so we can create maximum value for all our stakeholders,” a spokesman for the group told StarBiz. Read more>>
The sustainability of price rises that began last month for older homes is in doubt amid fears they will cool deals and send buyers to new builds, say industry experts.
With the overall improvement in sentiment in stock markets and no changes in United States interest rates, home owners have raised their asking prices in a bid to maximise their gains. Read more>>
Demand for new private homes in Singapore more than doubled last month, driven by more new launches.
Developers sold 1,091 new private homes in July, up 103.5 per cent from the 536 units moved in the previous month, according to data from the Urban Redevelopment Authority (URA) on Monday (Aug 15). The stronger sales were were due in part to more projects launched during the month. Read more>>
Wang On Properties (01243) launched another 130 flats at its Ma On Shan project, The Met Blossom, on the weekend. The units, sized between 221 to 411 sellable square feet, range in price from HK$3.14 million to HK$6.81 million, with the average per ssf price about HK$15,117.
Sales and marketing general manager Teresa Ching Tak-won said the additional units range from studios to two- bedrooms, and so far, the project’s show flats have attracted many first-time buyers. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.