A government move to sell a mixed-use site in Singapore’s urban core leads today’s real estate headlines from around the region, with Brookfield also making the list as the Canadian giant says it is scouting for more assets in China. Also in the news, Hong Kong home sales continue to sputter and a Softbank-backed hotel operator struggles to find profit.
A site in Singapore’s Marina South area zoned residential with commercial has been launched for sale by public tender under the H2 2022 confirmed list in the Government Land Sales (GLS) programme.
Situated along Marina Gardens Lane, the plot of land can yield about 790 residential units, said the Urban Redevelopment Authority (URA) on Monday with the project tender set up as part of the government’s plans to various possible housing options in the 45-hectare Marina South precinct. Read more>>
Brookfield Asset Management is on the lookout to acquire premium commercial property from distressed Chinese developers, aiming to increase its footprint in the world’s second-largest economy where fresh capital is needed to bail out the troubled real estate sector.
Yang Yiwen, senior vice-president of real estate portfolio management for Brookfield in China, said the Toronto-based firm would target prime properties in first-tier cities as they have potential to generate good long-term returns. Read more>>
Hongkongers snubbed new property sales on Sunday in the latest indication of weakening sentiment in the real estate market, after home prices fell to their lowest level in nearly five years. Only 10 out of 128 flats at Chill Residence in Yau Tong, a new development jointly launched by Poly Property and L’Avenue International Holdings, were sold on Sunday, according to real estate agents.
“[Prospective homebuyers] are taking a wait-and-see approach ahead of possible interest rate hikes in December,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division. Read more>>
Some 72 percent of apartment units at Tenet, the third and likely last executive condominium (EC) project to hit the market this year, were sold on the first day of its launch. Eligible buyers on Saturday (Dec 3) bought 447 units, which had an average launch price of about S$1,360 ($1,009) per square foot.
Tenet is a joint venture between Qingjian Realty and Santarli Realty – the real estate development arms of Qingjian Group and Santarli Construction respectively – as well as Heeton Holdings. Read more>>
Softbank-backed Indian hotel aggregator Oyo Hotels and Homes Pvt Ltd said on Saturday it is cutting 600 jobs in its corporate and technology departments. India’s IPO-bound Oyo will cut 10% of its 3,700-employee base, while at the same time hiring 250 people, it said in a statement.
Product and engineering teams are being merged to allow for smoother functioning, the company said, adding that downsizing in tech is also happening in teams which were developing pilots and proof of concepts such In-app Gaming, social content curation and patron facilitated content. Read more>>
China Evergrande Group’s electric vehicle unit has suspended mass production of its only model due to a lack of new orders, Reuters news report said.
China Evergrande New Energy Vehicle Group said in mid-September that it had started mass production of the Hengchi 5 model at a plant in the northern city of Tianjin and in late October said it had delivered its first 100 cars. Evergrande has paused production as there are not enough new orders for the electric sport-utility vehicle. Read more>>
Moody’s Investors Service has downgraded Agile Group Holdings Limited’s (Agile) corporate family rating (CFR) to Caa1 from B3, and the company’s senior unsecured ratings to Caa2 from Caa1. The ratings outlook on Agile also remains negative.
“The downgrade and negative outlook reflect Agile’s heightened liquidity and refinancing risks in view of its weak sales, limited financial flexibility, sizable refinancing needs and constrained access to funding,” said Kaven Tsang, a Moody’s Senior Vice President. Read more>>
Policy-driven, bank-led property lending will not fully reverse residential price declines in China, according to credit ratings agency S&P Global, which is predicting that mainland home sales will drop by another 8 percent next year.
In a report published on Monday, S&P estimates that developers have sufficient room to absorb a circa 6 percent home price decline this year and up to 8 percent next year as the company predicts. However it sees a more challenging situation in lower tier cities. Read more>>