Here is a list of the day’s latest China real estate news collected from around the web:
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Glorious Property gets HK$4.57 bil buyout bid from founder
Glorious Property stock soared by a record yesterday in Hong Kong following a HK$4.57 billion (S$736 million) offer by Chinese billionaire Zhang Zhirong to take the company private after the developer’s shares fell on slumping sales and amid financial woes at another company he controls.
Mr Zhang will pay HK$1.80 a share — 45 per cent more than the last traded price of HK$1.24 — for all outstanding stock, Glorious Property said in a Hong Kong stock exchange filing late on Thursday. Mr Zhang, who has a 68.4 per cent stake in the company he founded, intends to finance the purchase by using an external loan facility.
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Property tax ‘unlikely’ to suppress house prices
Speculation is not the cause of China’s hefty house prices and the introduction of a real estate tax in the future is unlikely to suppress the country’s rising house prices, according to noted Chinese economist Wu Jinglian.
Wu made the remarks at a forum held in Shanghai by the China Europe International Business School, Shanghai Securities News reported on Monday.
A reform master plan, unveiled on November 15 by the Communist Party of China Central Committee, said China will introduce property tax legislation.
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The US$229m question about Spring Reit’s share offering
The US$229 million initial public offering of Spring Reit, a real estate investment trust that has two office buildings in Beijing’s China Central Place, looks more like a private equity exit than a genuine rental growth story since the majority stakeholder, AD Capital, put more than 70 per cent of the vendor shares in the sale.
The offering comes as an anti-climactic surprise after a surge in Beijing’s prime office space in the build-up by multinational corporations since the 2008 Beijing Olympics. The strong influx of foreign capital into the city helped double office space between 2008 and 2012.
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Child policy shift to create housing demand
Kelvin Xie Puching was elated when he heard that his dream of having a second child was a step closer to reality, courtesy of the Communist Party’s announcement that it would soon relax its long-standing one-child policy.
“Most of my friends and I are of the view that it is much better to have two children instead of just one in a family,” said Xie, a senior associate director at DTZ’s Shenzhen office. “If we grow old, for instance, it’s best to have two children who can share the responsibility of taking care of us.”
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Xiamen-Shenzhen Rail Line Expected to Boost Real Estate
The Xiamen-Shenzhen High-Speed Railway will create a new economic growth belt along the 502.4 km-long rail line, Xiamen Daily reports.
The new high-speed rail line is credited with sparking a real estate and housing boom, among other economic benefits, in cities along the line.
Industry insiders said the newest high-speed railway will strengthen the integration of the cities’ function and also promote balanced, sustainable development of urbanization and economy in the region.
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