Elon Musk loves China so much he’s decided to set up a JV production facility in Shanghai
Tesla is partnering with a government-owned business park developer to open a mainland production facility in Shanghai, Hong Kong’s central bank wonders if offering 120 percent mortgages might be risky, and two companies linked to questionable trading may not be the finest indicators of Hong Kong’s stock market performance. Read on for all the the real estate stories in the region.
Tesla Chooses Shanghai for China Production Base
Shanghai has emerged as the front-runner to become the production base for Tesla Motors Inc. in China in an investment that may be valued at about $9 billion, according to a person with knowledge of the matter.
Jinqiao Group, a Shanghai government-owned company, has signed a non-binding memorandum of understanding with Tesla on building its production facilities in the municipality, said the person, who asked not to be identified because the negotiations are private. Read more>>
HK Central Bank Worried Over Developers’ Risky Mortgages
Hong Kong’s banking regulator has expressed concern over the ultra-accommodative financing schemes offered by some Hong Kong developers to entice home buyers, saying that it is studying whether controls are needed to help offset credit risk.
The Hong Kong Monetary Authority (HKMA) said it is monitoring the recent practises by developers, including financing schemes that provide prospective buyers with 80 per cent or more of a home’s purchase price to drum up sales. Read more>>
Pan’s Goldin to Be Dropped From Hang Seng Index
Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., two companies controlled by Pan Sutong, will be dropped from the Hang Seng family of indexes as of June 30 because of their high shareholding concentration that has contributed to wide swings in the stocks.
The two companies have been the subject of a series of notices from Hong Kong’s securities regulator flagging the issue. Pan and entities controlled by him own about 64 percent of Goldin Properties’ shares and almost 68 percent of Goldin Financial’s stock, according to data compiled by Bloomberg. Read more>>
Why China’s Developers are Hooked on High-Priced Land
If the cost of flour is higher than the price of bread, what should a baker do? Chinese property developers are choosing to buy more flour.
Prices for land, the main ingredient of the property world, have hit record highs in auctions this year in many Chinese cities. The average land price per square meter for the top 100 cities in the first five months of this year jumped nearly 50% from the same period last year, according to Wind Information. Some land prices are even higher than housing prices nearby. Read more>>
HK Flat-Buyers Said Scammed by UK Developers
As more Hong Kong people are investing in overseas properties, there could be risks involved – even if the projects are located in developed countries like Britain.
A group of 60 buyers protested at Wan Chai police headquarters at the weekend to demand cooperation with British police to investigate a potential scam involving unfinished presale overseas properties in Bradford and Manchester. Read more>>
Why Anbang’s Waldorf Condo Conversion Makes Sense
In 2004, after the Elad Group paid $675 million for the Plaza Hotel, it poured another $400 million into the iconic property and converted a portion of the rooms into private condominiums. In 2005, Taj Hotels and Resorts did the same when it acquired the Pierre, now home to 217 co-op units. Meanwhile, the newly built Baccarat Residences includes 60 ultra-luxury condos atop the five-star hotel.
So it’s no surprise that Anbang Insurance Group, the new Chinese owner of the Waldorf Astoria, plans to take as many as 1,000 hotel rooms out of circulation to create high-end condos at the New York City landmark. Read more>>
Singapore’s Ascott Secures 7 New Sites Across Asia
CapitaLand’s wholly owned serviced residence business unit, The Ascott, said yesterday it secured another seven new properties in as many cities in Asia, adding a total of 1,714 units to its portfolio as it looks to surpass last year’s record growth.
“Ascott is set to continue this expansion momentum for the rest of the year to outperform 2015, which was our record year of growth with a total of 6,700 units added to our portfolio. We are able to scale up quickly because of the strong alliances with global partners, as well as industry leaders from land owners to property developers, construction firms, online platforms and tech companies,” said Ascott’s CEO Lee Chee Koon. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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