Ni Pengfei of CASS is warning of a market correction this year
Some of China’s biggest developers are raising their 2016 sales targets after a hot first half – just in time for a downturn projected by one of the country’s top think tanks. Meanwhile, the Vanke battle continues as the Baoneng barbarians up their stake to 25 percent, and Asian property investors could be among the biggest Brexit losers as six UK real estate funds suspend trading. Read on for all these stories and more.
Top Think Tank Warns of Mainland Property Correction in 2H
A top think tank has warned of a looming correction in the Chinese property market, after what it called a policy-driven rally in the first half of the year.
The Chinese Academy of Social Sciences (CASS) is now predicting the rate of price growth in the second half of the year and first half of 2017 will moderate, or even fall back. Read more>>
Chinese Developers Raise Sales Targets After Hot First Half
A number of China’s leading property developers have raised their sales targets after posting significant sales growth in the first half of the year.
Analysts say the strong performance has been driven by the central government’s prolonged credit easing measures, but they caution that policy could be tightened in the second half. Read more>>
Baoneng Raises China Vanke Stake to 25% as Stock Slides
China’s largest real estate developer Vanke’s mainland-listed A-shares have been limit down 10% for the last two trading days, but near yesterday’s close, there were large trades buying into Vanke.
They turned out to be buy orders from dissenting shareholder (or barbarian at the gate if you are on the long-time management’s side) Baoneng. Baoneng said it bought 75.3 million Vanke A-shares yesterday, or 0.68% stake, bringing the group’s total stake to 24.972%. Read more>>
Asian Property Investors Among Big Losers in Brexit Slide
From Hong Kong’s central bank to China’s largest property developer, Asian investors have a lot riding on London’s real estate market.
Britain’s decision to leave the European Union has clouded the outlook for property, prompting asset managers to freeze withdrawals from real estate funds as investors rushed to redeem their money. Commercial property values could fall about 10 per cent over the next year, led by declines in oversupplied central London, BlackRock Inc. said after the vote. Read more>>
HK Property Sales Slid 40% This Year
Hong Kong’s overall property sales plunged nearly 40 per cent in the six months ending June compared with last year, according to the latest figures from Midland Realty.
Despite a recent improvement in sentiment, the agent said the dim economic outlook and increased home supply continued to cast a shadow over the market. Read more>>
Chinese Ghost City Comes to Life in Music Video
Visitors to any one of around 50 ghost cities in China will be struck by the scale of the uninhabited buildings and how quickly they fall into decay. Once in a while, they get a second life.
Filmmaker Romain Gavras used the eerily vacant Tianducheng, or Tiandu city in Hangzhou, as the setting for a dramatic music video for British DJ Jamie xx’s track “Gosh.” Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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