Beijing may soon see increase of US$16m ‘super mansions’ – and more of Today’s China Real Estate Links | September 17, 2013

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

• Beijing may soon see increase of US$16m ‘super mansions’: expert

  Beijing will soon see a rise in “super mansion” properties worth more than US$16 million, according to a government expert.

  As the number of wealthy in China continues to rise, there will also be more demand for mansions in major cities across the country including Shanghai, Hangzhou and Wuhan. Meanwhile, properties prices continue to skyrocket, with prices in Shanghai, for example, reaching record highs on a regular basis.

  “While land prices continue to rise, it is naturally that real estate prices will continue to rise as well,” said Zhou Biwen, head for Beijing Institute of Technology’s Institute of Real Estate Research.

• Foreign funds return to China real estate market

  Foreign capital is returning to the mainland’s real estate investment market, with major deals in Shanghai helping to drive the number of transactions in the first half of the year to three times the level for the whole of 2012.

  “There is more to come, at an even faster pace,” said Stanley Ching, senior managing director and head of the real estate group at Citic Capital, a private equity firm.

  Transactions valued at US$10 million or above that were completed in Shanghai in the first six months of the year amounted to 17 billion yuan (HK$21.4 billion) and foreign acquisitions accounted for 13.8 billion yuan, or 81 per cent, according to a study by international property consultancy DTZ.

• Chinese Building Giant Invests in $1bn Dubai Hotel

  China State Construction Engineering Corporation is to invest in Skai Holdings’ $1bn project to build a new Viceroy Dubai hotel on the Palm Jumeirah.

  The companies will form a special purpose vehicle, ASSAS, to deliver the scheme, which is due to open during the fourth quarter of 2014.

  Yu Tao, president and CEO of China State Construction Engineering Corporation Middle East, said: “We are thrilled to be partnering with SKAI Holdings to develop this exciting new project, which we believe will become one of the region’s most sought-after resorts.

• China’s Elderly Told to Mortgage Their Homes to Live

  Elderly people in the country are encouraged to use their property as collateral for a loan from banks, in an effort to give a boost to their existing pension, the State Council, China’s cabinet, said in a latest circular.

  The plan of expanding this project nationwide came after several financial institutions in some regions piloted it on a trial basis, said the circular.

  The country’s rapid increase in population aged over 60, from 194 million by the end of 2012 to 300 million in 2025, has put huge pressure on the pension system, it added.

• Foreign brands say worst over for mainland economy

  Global brands from Nestle to Porsche said the worst has passed for China’s economy as wage increases and consumption in cities in the country’s interior drive sustained growth.

  “China is still an amazing opportunity, Roland Decorvet,” Nestles Greater China chairman, said at the three-day World Economic Forum in Dalian, China that concluded on Friday.

  Porsche China chief executive officer Deesch Papke said the country is likely to surpass the US next year as its largest market.

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

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