Sun Hung Kai’s Raymond Kwok is in a hurry to expand his mainland portfolio
Blue-chip Hong Kong developer Sun Hung Kai Properties leads Mingtiandi’s collection of news stories from around Asia today as the company announces that it intends to nearly double its investment portfolio in Mainland China by 2023 on the same day that it revealed an interim profit plunge of 31.2 percent due to a change in accounting policy. The home builder could be in for some macro-level relief in its home market as government statistics reveal that Hong Kong home prices ended a five month skid in January, while still more positive news awaits in India, where a research report from Colliers says the country’s real estate sector will likely reach a value of $1 trillion by 2030 — up from $120 billion in 2017. Read on for all the details on these stories and more in Mingtiandi’s daily roundup of headlines from around Asia.
SHK Properties to Nearly Double China Investment Portfolio
Sun Hung Kai Properties, the most valuable developer listed in Hong Kong, plans to nearly double its China investment portfolio by 2023 as part of efforts to create drivers for recurrent revenue growth amid challenges in acquiring land in Hong Kong, according to Nikkei Markets.
The company said on Wednesday, when it announced results for the half-year ended December 31, that it expects to expand its portfolio of investment properties in China to ‪2.32 million square metres (25 million square feet) by 2023 from about ‪1.2 million square metres (13 million square feet) at present. Read more>>
Sun Hung Kai Posts 31.2% Drop in Interim Profit on Accounting Change
Sun Hung Kai Properties, Hong Kong’s biggest developer by market value, reported a 31.2 percent fall in underlying profit for the six months to December because of a change in accounting policy, it said in a filing to the Hong Kong stock exchange on Wednesday.
The company said that from July 1, 2018, it had been recognising revenue from property sales in Hong Kong only after delivering the property to buyers. Read more>>
Hong Kong’s January Home Prices Advance
Hong Kong’s home prices took a breather in January from their five-month drop, vindicating earlier predictions by some analysts that transaction values could reverse last year’s 9.2 percent decline.
The overall price index of pre-owned homes rose by less than a tenth of a percentage point to 359.5 last month, after having dropped 9.2 percent from August to December, according to data by the Rating and Valuation Department. Read more>>
India’s Real Estate Sector to Touch $1 Trillion by 2030: Report
According to a recent report presented by Colliers Research, the real estate sector in India is expected to reach $1 trillion by 2030 from $120 billion in 2017. The report said that real estate sector would also contribute 13 percent of the country’s GDP by 2025.
The Indian real estate sector could be in for some good days and is expected to grow at a rapid pace due to increasing income, urbanization, and economic growth. The Modi government’s recent decision to cut GST rate on under construction and affordable houses is further expected to boost the otherwise struggling sector. Read more>>
Analysts Stay Bullish on UOL Despite 51% Drop in FY18 Earnings
Analysts from OCBC Investment Research and CGS-CIMB Research are staying positive on Singapore’s UOL Group, despite the property company reporting a 51 percent drop in full-year earnings to $433.7 million for the FY18 ended December.
The decline was mainly due to the absence of a one-off gain of $535.6 million in FY17 on the consolidation of United Industrial Corporation (UIC). Excluding this one-off gain, UOL’s earnings would have been 26 percent higher in FY18. Read more>>
Pair of Singapore Shophouses Up for Sale
A pair of freehold two-storey conservation shophouses at 69 and 71 Kampong Bahru Road in Singapore are up for sale. The shophouses, which come with attics, occupy a land area of ‪217 square metres (2,343 square feet) and have an estimated gross floor area of ‪552 square metres (5,947 square feet).
The site is zoned “commercial” under the Urban Redevelopment Authority’s 2014 Master Plan, hence, foreigners are eligible to buy the property. In addition, there is no additional buyer’s stamp duty or seller’s stamp duty imposed on the purchase. Read more>>
WeWork Aims for the Middle with Expanded ‘HQ’ Service
WeWork is expanding an effort to retain mid-sized businesses which had been leaving the shared office space manager after they grew past the small-company phase, and to catch up with rivals already catering to these clients.
HQ by WeWork, launched in San Francisco and New York in August to provide enhanced services for businesses with 11 to 250 employees, is targeting 11 overseas markets including London and Shanghai, as well as US hot spots such as Boston and Denver, said executives at WeWork, a unit of The We Company. Read more>>
Hong Kong’s January Home Prices Advance
Hong Kong’s home prices took a breather in January from their five-month drop, vindicating earlier predictions by some analysts that transaction values could reverse last year’s 9.2 percent decline.
The overall price index of pre-owned homes rose by less than a tenth of a percentage point to 359.5 last month, after having dropped 9.2 percent from August to December, according to data by the Rating and Valuation Department. Read more>>
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