China home prices to keep rising over next few months – Today’s China Real Estate Links | November 14, 2013

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

• China home prices to keep rising over next few months

  Home prices in major mainland cities will continue to rise for the rest of this year, despite recent cooling measures, even though transaction volumes will probably fall, industry analysts say.

  Shanghai, Shenzhen, and Beijing have in the past few weeks stepped up efforts to cool their real estate markets as annual increases in home prices remain stubbornly above 20 per cent, exceeding local leaders’ targets of below 10 per cent for the year.

  Surging home prices have fuelled social discontent and local officials, most of them in the first year of their new posts, are under pressure to make homes more affordable.

• Sun Hung Kai’s Shanghai IAPM Mall Wins Award

  Shanghai IAPM mall wins 2013 MIPIM Asia’s Best Retail & Leisure Development Gold Award

  Sun Hung Kai Properties’ (SHKP) Shanghai IAPM mall won 2013 MIPIM Asia’s Best Retail & Leisure Development Gold Award.  The mall has won industry praise as a stand-out project in Asia and is desired location for many international retailers.

  The MIPIM Asia Awards recognize outstanding office, shopping centre, hotel and resort developments, innovative green buildings and projects in China.

• Developer Bond Sales Double as Xi Allows Property Boom

  Chinese developers’ sales of dollar bonds more than doubled this year, reflecting confidence the government will tolerate a sustained property boom as home prices climb at the fastest pace since January 2011.

  The companies sold $17.88 billion of the notes as of Oct. 20, up from about $8 billion for the whole of 2012, according to a report by Moody’s Investors Service. The average yield on Chinese issuers’ dollar debt was 4.42 percent in 2013, less than the 5.51 percent in the previous five years, the HSBC Asian US Dollar Bond Index shows.

• Son of Sun Hung Kai Founder Bids for Australia Casinos

  Hong Kong-based property tycoon Tony Fung made a takeover offer for Reef Casino TrustRCT.AU +40.49%, sending shares in the Australian casino operator to their highest level in six years.

  The conditional offer from Aquis Casino Acquisitions Pty Ltd, an entity controlled by Mr. Fung’s family, values Reef at 213.6 million Australian dollars (US$198.8 million), or A$4.354 a share. Reef owns the only casino in the city of Cairns in the north of Australia’s Queensland state.

  Shares in Reef rose 44% to a peak of A$4.10 early Wednesday before paring back gains to A$4.00 in early afternoon trade.

• Blackstone Says HK Needs China Free Trade Zone to Compete with Shanghai

  Hong Kong should build a free-trade zone with the neighboring Chinese province of Guangdong to make it a more competitive commercial and financial center for the world’s second-biggest economy, a former top city official said.
  By creating a zone that allows Hong Kong-based companies and individuals to freely access Chinese markets, the city would be able to better exploit lower tax rates and other advantages it has over Shanghai and mainland regions, Antony Leung, who served as finance secretary from 2001 to 2003 and is now greater China chairman for Blackstone Group LP (BX), said yesterday at a Bloomberg seminar.

• Fund managers look towards Asia for real estate investment

  Amid a climate that remains harsh for property fund managers, the focal point for sourcing capital is shifting inexorably to the East.

  Asia-based institutions are by far the most likely to award new mandates to private real estate investments next year, according to figures from data provider Preqin. In all, 71 per cent say they are likely to make new commitments to the sector over the next 12 months, double the rate of United States investors and triple the rate of European investors.

• Decathlon to team up with Vanke on China expansion

  Decathlon, the French sports goods chain, signed a strategic alliance with real estate giant China Vanke Co Ltd on Thursday in a bid to further penetrate the country’s lower-tier markets.

  Under the contract, Decathlon will rent or buy properties in Vanke’s commercial projects in second- and third-tier Chinese cities such as Foshan and Dongguan to open its new stores.

  “It’s a win-win situation for both parties. Decathlon can lower their costs on finding good store locations, and Vanke has a famous brand to lease their property,” said Wang Hongtao, a press officer and industry expert from the China Chain Store and Franchise Association.

This list is updated daily, so tune in again tomorrow for more up to date information.

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