Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2023 Event Calendar
    • Mingtiandi APAC Residential Forum 2023
    • Mingtiandi Asia Logistics Forum 2023
    • Mingtiandi Hong Kong Focus Forum 2023
    • Mingtiandi APAC Data Centre Forum 2023
    • Mingtiandi Asia Office Strategies Forum 2023
    • Mingtiandi Singapore Focus Forum 2023
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Soho’s Pan Alarmed Over Imminent Wreck of Real Estate Industry

2014/05/27 by Michael Cole Leave a Comment

Pan Shiyi Soho China

Soho’s Pan Shiyi is getting a sinking feeling about the real estate market

Pan Shiyi, chairman of Hong Kong-listed developer Soho China, thinks that the country’s real estate industry is headed for disaster, one that he likens to a certain famous shipwreck, and he thinks the coming crash could sink the whole economy.

Speaking at a financial forum in Beijing, the attention-seeking head of one of China’s largest commercial property firms said, “I think China’s property market is like the Titanic and it will soon hit an iceberg in front of it.”

While Pan and his wife Zhang Xin, the CEO of Soho, are known for their publicity stunts, the industry has been facing real headwinds this year with credit agency Moody’s downgrading the entire sector to negative earlier this month.

According to a report in the Wall Street Journal, Pan sees the coming crash as spreading rapidly into the finance sector which has long supported the country’s developers.

“After hitting the iceberg, the risks will not only be in the real estate sector. The bigger risk will be in the financial sector,” the Journal reported Pan as saying. The Beijing-based tycoon highlighted the heavy linkages between China’s shadow banking industry, including the many trusts, wealth management vehicles and entrusted loans which have lent cash to real estate projects that are looking increasingly risky.

Pan, who indicated later that he believed his comments to be off the record, even predicted that real estate prices would drop by 20-30 percent. After the remarks were reported in the local media, the billionaire businessman did not dispute the accuracy of the accounts.

Pan Not the Industry’s First Pessimist

Less than one month ago Mao Daqing, Vice Chairman of China Vanke also predicted tough times for the real estate industry at a private event, only to see his remarks appearing on the Internet soon thereafter.

The top of executive from China’s largest developer by sales said in at the time that China’s housing market is saturated and that there’s no chance for further price increases unless the government once again resorts to stimulus measures.

The negative remarks by Mao came just after the Shenzhen-based developer reported its first quarterly drop in profits since 2002. Soho has also struggled recently, reporting at earlier this year that its profits for the second half of 2013 were down 47 percent compared to the same period a year earlier.

Perhaps to jettison some unnecessary load before heading into a stormy market, Soho earlier this year also sold two commercial projects in Shanghai for RMB 5.23 billion ($851 million), a price well below what the company had originally asked for.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Real Estate Professionals Tagged With: China real estate bubble, china real estate developer, China Vanke, crebrief, highlight, Pan Shiyi, SOHO China, Zhang Xin

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

new economy panel office forum thumbnail
Allianz, Benoy, JLL, Asia Green Tackle the New Economy’s Impact on Office Markets: MTD TV
MTD TV Emerging classes in residential screenshot
Student Housing, Senior Living Offer Amped Yields for Multi-Family Investors: MTD TV

More MTD TV Videos>>

People in the News

Charles Griffith Macquarie
Asia Real Estate People in the News 2022-02-06
Kelvin Chan CBRE
CBRE Hires Kelvin Chan as Head of Capital Markets for China
Yoshinaga Takahashi PDG
PDG Hires Mitsui’s Yoshinaga Takahashi as Managing Director of Japan
Brian Kwon Dexus
Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-02-06

Charles Griffith Macquarie

Finance giants lead this week’s collection of personnel moves on Mingtiandi as two of Asia Pacific’s largest financial … Read More>>

CBRE Hires Kelvin Chan as Head of Capital Markets for China

Kelvin Chan CBRE

CBRE on Friday announced the appointment of Kelvin Chan as the global property consultancy’s head of capital markets for … Read More>>

PDG Hires Mitsui’s Yoshinaga Takahashi as Managing Director of Japan

Yoshinaga Takahashi PDG

Princeton Digital Group has appointed Yoshinaga Takahashi as managing director of Japan, where he will help execute the … Read More>>

Dexus Opens Singapore Office, Hires Brian Kwon as Head of Distribution for Asia

Brian Kwon Dexus

Australian property major Dexus is extending its regional reach with the opening of a new office in Singapore and the … Read More>>

More Industry Professionals>>

Latest Stories

Charles Griffith Macquarie
Asia Real Estate People in the News 2022-02-06
David Loh Kim Kang Centurion
Singapore’s Centurion Plans $92M Sydney Student Housing Project
Todd-Olson Cushman & Wakefield
Singapore Leads APAC Data Centre Rankings with 2% Vacancy

Sponsored Features

How Data Leadership Can Prepare Real Estate Companies for Big Data and AI in 2023
OpenSpace Capture
OpenSpace Capture Provides On-the-Ground Eyes at US Government Building Projects
Malls and Megaprojects from Hong Kong to Beijing Triumph at PropertyGuru Awards Show

More Sponsored Features>>

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2023 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.