Here is a list of the day’s latest China real estate news collected from around the web:
If the Skyscraper Index maintains its track record, then China should steel itself for economic collapse. The infamous property index says construction booms that give rise to the world’s tallest buildings are the harbingers of economic busts.
On July 20, developers celebrated the groundbreaking of Sky City in the southern Chinese city of Changsha. It is set to be completed in 2014 and at 838 meters it would overshadow the Burj Khalifa in Dubai — currently the world’s tallest building — by 10 meters.
Strong profit growth at China’s largest property developer by sales signals that demand in the crucial real-estate sector remains resilient, providing a prop to a slowing Chinese economy.
Shenzhen-based China Vanke Co., 000002.SZ +0.50% which has a presence in more than 60 Chinese cities, on Tuesday said net profit rose 22% in the first half compared with a year earlier, to 4.56 billion yuan ($745 million). Vanke, which is one of the first Chinese developers to report this season, is often seen as a bellwether for the property sector.
Chinese developers may resume share sales on the country’s mainland exchanges as announcements of such plans by property companies in the past week add to signs that the government may allow new equity financing to proceed.
Sundy Land Investment Co. (600077), a Shenyang-based developer, plans to raise as much as 1.5 billion yuan ($245 million) in a private placement to finance two housing projects, the company said in a statement to Shanghai Stock Exchange yesterday. China Merchants Property Development Co. (000024), the country’s third-biggest developer by market value, plans to sell shares to buy assets, according to a statement posted to Shenzhen Stock Exchange.
This fall in Hawaii, the people over at LA bound Affinity China will be hosting hundreds of affluent Chinese looking for a piece of real estate in the U.S. Countries around the world are watching affluent Chinese gobble up property, most of it prime-time. In some countries, this will have ramifications on social services — as is the case in places like New Zealand — and Canada, as the eastern cities take in a new flux of buyers from Vancouver.
Developed country equity and credit markets snapped back quickly after the Federal Reserve tapering wobble a few weeks ago. From the crow’s nest, markets have accepted that Fed policy normalisation will be gradual, become more confident about economic prospects, and put to one side earlier concerns about the risk of deflation. At the coalface, though, things look more nuanced, and suggest that Fed tapering is much less of a risk than rising concern over a ‘fin de siècle’ moment in emerging markets, especially China, which could spark new deflation fears.
Brookfield Property Partners is buying Industrial Developments International Inc. for $1.1 billion.
Industrial Developments owns 75 industrial distribution facilities in 12 states that serve consumer product, retail and industrial companies. The Atlanta company also has a third party property management business and some future development projects.
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