Here is a list of the day’s latest China real estate news collected from around the web:
- China faces tough decisions on its real estate market
Rising home sales and prices are cheered in the U.S. as keys to an economic recovery. But in China, the prospect of a housing surge is fraying the nerves of policymakers.
Alarmed by ballooning values — and the growing frustration of average citizens fearful of never owning a home — China’s central government in 2010 introduced curbs to cool the nation’s overheated real estate market. It worked. Tighter credit, a crackdown on speculators and limits on purchases of second homes slowed price rises and stopped some developments cold.
- Roger Vivier’s High-Stakes Bet On China
Recently, French fashion house Roger Vivier– creator of the Stiletto heel — opened its third mainland China location at Shenyang’s Mall Forum 66, shortly after unveiling its Beijing Yintai Centre flagship and two years after entering the market with an inaugural Shanghai flagship at Plaza 66. Speckled with high-profile guests like popular fashion blogger Han Huohuo in Shenyang, and actress Zhao Wei and supermodel Du Juan in Beijing, Vivier’s grand openings have ensured a great deal of exposure on Sina Weibo.
- Industrial Real Estate Looks East
China is not just exporting good anymore. Changes in the country over the years have created a major consumer society, and its logistics sector is trying to adapt, according to new research by Jones Lang LaSalle.
Three trends are taking place that are moving this along: the increase of the country’s middle class, and uptick in incomes and the development of a strong infrastructure. All of these factors are creating oppportunities for US firms looking to invest in China, according to JLL.
- Li’s ARA Cancels Dual-Currency IPO, Citing Sluggish Demand
ARA Asset Management, the manager of property trusts backed by billionaire Li Ka-shing, canceled what would have been Singapore’s first dual-currency initial public offering amid sluggish demand for new equity.
ARA suspended the IPO of Dynasty Real Estate Investment Trust (DYREIT), which is backed by commercial real estate in China and was set to trade in both yuan and Singapore dollars, according to a stock exchange statement yesterday.
- International Retailers Struggle In China
In recent weeks, many of the large international retailers have announced changes in their expansion plans for China. Home Depot (NYSE:HD), the large U.S. do-it-yourself chain, is closing stores, as is Tesco PLC (LSE:TSCO.L), the large U.K. retailer. Even the two earliest entrants into China’s retailing industry, Wal-Mart Stores Inc. (NYSE:WMT) and Carrefour SA (Paris:CA.PA), are struggling to make their business models work in the country.
On September 14, Home Depot announced that it would be shutting its remaining seven stores in China. Between 2009 and 2011, the company had closed five of its original 12 Chinese stores due to rising real estate costs.
- China Real Estate Outlook 2013: The Worst is Yet to Come
China Overseas Land & Investment, one of the mainland’s largest developers, says the worst is not over yet for the real estate market even though liquidity has improved, according to a report by the South China Morning Post.
Liquidity was expected to increase but there would not be any significant relaxation in the tightening policies targeting the country’s property market, chairman Kong Qingping said in the company’s statement on its third-quarter financial and business review.
- China developer Vanke Q3 more than doubles on sale recovery
China Vanke Co Ltd (000002.SZ), the country’s largest real estate developer by sales, said its third-quarter profit more than doubled, citing a recovery in the property market.
China has restricted bank lending to the real estate sector and limited the ability of citizens to buy multiple homes or homes in other cities to curb speculation, in a country where property is one of the few outlets for investment.
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