China’s real estate investors proved that they are quick to forgive, as developer stocks have quickly bounced back after last week’s losses. And the nation’s real estate companies have quickly responded to the vote of confidence by snapping more high-priced land in Shanghai. All this and more in today’s headlines.
Following the shock of last week’s collapse of a real estate developer in Ningbo, Shanghai’s stock exchange has rapidly returned to its usual optimism. Among the biggest gainers on Monday, China Fortune Land surged by 10 percent (the daily limit for any stock), while Poly Real Estate spiked 3.5 percent, and Gemdale climbed 1.2 percent.
Developer Xiangyu Real Estate purchased two residential land sites in Songjiang’s Xinqiao Town for RMB 2.93 billion (an accommodation rate of RMB 16,300 per square metre, according to a report in Guandian.com. Xiangyu paid a premium of 71 percent over the auction’s starting price.
The ratio of foreign investment in China’s property market fell to 0.08 per cent in the first two months of this year, the lowest in at least a decade, according to data from the National Bureau of Statistics. Analysts attributed the decline in interest from foreign investors to a combination of diminishing returns and rising restrictions.