Smaller discounts crimp demand for new homes in Shanghai – Today’s China Real Estate Links | August 1, 2012

Here is a list of the day’s latest China real estate news collected from around the web:

• Smaller discounts crimp demand for new homes in Shanghai

  NEW home transactions remained flat in Shanghai last week as smaller discounts offered by real estate developers damped interest among buyers, data showed yesterday. Purchases of new residential properties, excluding government-subsidized affordable housing, dipped 0.7 percent from a week earlier to 174,200 square meters during the seven days ended on Sunday, Shanghai Deovolente Realty Co said in a report.”New home sales began to drop in the second half of this month with weekly volume hovering around 170,000 square meters for two straight weeks, down from the previous level of around 200,000 square meters,” said Lu Qilin, a Deovolente researcher.

• Hong Kong Builders Unload Properties to Raise Cash for Land Rush

  Hong Kong developers, exploiting a surge in prices since 2009, are selling shopping malls, offices and parking garages at the fastest pace in at least seven years to raise cash ahead of an increase in government land sales. Sino Land Co. (83) and Hang Lung Properties Ltd. (101) are among builders divesting commercial property in the past six months.

• J.Crew to Open First Asian Store in Hong Kong

  J.Crew Group Inc., the apparel retailer whose customers include U.S. First Lady Michelle Obama, is planning its first Asian store in Hong Kong targeting tourists from mainland China that totaled 28 million last year. The retailer may open the Hong Kong store as early as next year and is also looking for sites in Beijing and Shanghai, Chief Executive Officer Mickey Drexler said in an interview in Hong Kong.

• Hang Lung First-Half Underlying Profit Rises on Home Sales

  Hang Lung Properties Ltd. (101), the Hong Kong developer that focuses on building shopping malls in China, said first-half underlying profit rose 72 percent after it booked more gains from selling homes and commercial assets. Earnings excluding revaluation gains and deferred tax climbed to HK$2.52 billion ($325 million) in the six months to June 30 from HK$1.47 billion a year earlier, the developer said in a statement to the Hong Kong stock exchange today.

• China developers’ finances have improved: Moody’s

  China’s property developers have seen their finances improve due to better housing sales in recent months, but the gains have been uneven and the negative outlook for the sector remains unchanged, said a senior executive at credit-ratings firm Moody’s Investors Service. Beijing has been more supportive of first-time home buyers since early this year amid efforts to push prices lower and curb speculation while supporting genuine housing demand.

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