China Property Market

[opmi]

http://www.valuebuddies.com/thread-4596-...#pid120202

The SZ land is in Shekou, Nanshan, SZ. Facing the sea. Next to SZ-HK border crossing.

https://goo.gl/maps/gY3hNk7jAHP2

[greengiraffe]

The World's Largest Elevator Market Is Falling and May Never Recover
 
Chris Cooper ChrisTokyo
November 30, 2015 — 6:00 AM SGT

• Peak of 600,000 China elevator sales may never be seen again
  
• Otis will boost engineers in Japan by about 50 percent
  

The world’s biggest elevator maker said China’s best days may be behind it.
After peaking at 600,000 units last year, sales in China may drop to about 500,000 next year amid a surplus of apartments and slowdown of people moving to big cities, Otis Elevator Co. President Philippe Delpech, who heads the world’s largest maker of elevators, said in an interview in Tokyo this month. After that, the market in China, where more than two-thirds of elevators are sold, may stabilize, he said.
[Image: 488x-1.jpg]
So when will demand bounce back?

“It could be never,” Delpech said. “We will have to adjust the output of the factories to the market. You will have a consolidation in the market and some small companies will disappear.”
As the country heads for its slowest economic growth in a quarter century, the maker of the elevators that lift tourists atop the Eiffel Tower or Empire State Building is among the growing number of companies searching for solutions to cope with a slumping China. For its part, Otis said it’s investing in Japan, where it developed the double-decker elevator used in the tallest building on the planet to come up with more sophisticated models.
“The largest threat facing elevator makers is a slowdown in Chinese demand,” said Johnson Imode and Mustafa Okur, analysts at Bloomberg Intelligence. Real estate investment remains on a downward trend in China and is increasingly dependent on government stimulus, according to a BI report this month.
Though Otis isn’t listed, it accounts for about 20 percent of sales at its parent, United Technologies Corp., which is. Shares of United Technologies have fallen 15 percent on the New York Stock Exchange, last closing at $97.27.

In Japan, Otis plans to add about 20 engineers to its team of 35 to 40 in Shibayama, east of Tokyo, to develop cutting-edge elevators with sensors and remote monitoring that whisk guests to their hotel room floors simply by reading signals from their mobile phone, he said.
[Image: 488x-1.jpg]

Shanghai World Financial Center, the Jinmao Tower, and the Shanghai Tower
 
Photographer: Johannes Eisele/AFP/Getty Images

As for China, the company will need to cope with the new reality that the heydays may be over. Chinese buildings had been leap frogging each other for the title of the country’s tallest building over the past two decades. The 88-story Jin Mao Tower was the highest building when it was completed in 1999, only to be overtaken by the Shanghai World Financial Center in 2008. That was beaten by the Shanghai Tower earlier this year.
“It’s like when they built New York up over 20 to 30 years. They delivered more elevators than they will ever deliver again," Delpech said. "It’s kind of that type of construction.”

[BlueKelah]

China Vanke's Yu Says Company Faces Hostile Takeover From Holder

China Vanke Co.’s President Yu Liang said China’s biggest homebuilder faces a hostile takeover from a consortium backed by Baoneng Group, which became its biggest shareholder this month.
Yu commented Friday at a media briefing in Chengdu city, according to a public relations manager who asked not to be named, citing company policy. Chairman Wang Shi said the property developer doesn’t welcome Baoneng Group and its affiliates, who lack sufficient credibility and may have a negative impact on Vanke’s credit ratings and reputation, according to a transcript from an internal meeting obtained by Bloomberg News, the contents of which were confirmed by the company. Vanke, the world’s largest listed property company by market value, suspended trading Friday pending a share sale.
“What we face today is the same as a hostile takeover,” Yu said during the Friday briefing. “Vanke welcomes shareholders which will not intervene with the business of the company,” he said, citing China Resources Co. as an example of such a holder.

Vanke, which develops residential properties in Shenzhen, Shanghai, Beijing and other big Chinese cities, has a market capitalization of more than $40 billion. Baoneng Group replaced China Resources Co. as Vanke’s largest shareholder this month, prompting the rare public spat. The planned share sale prompted speculation that Vanke is seeking to dilute the ownership of Baoneng Group.
“This could potentially be a counterattack by Vanke to Baoneng,” said David Hong, a Hong Kong-based director of China Real Estate Information Corp. “Vanke may try to introduce a third-party investor.”

read more on bloomberg.......................

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certainly one to watch. exciting hostile takeover!!!

[Behappyalways]

《经济半小时》 20160101 房地产去库存调查：安徽宿州
http://jingji.cntv.cn/2016/01/01/VIDE145...4734.shtml

[BlueKelah]

Perpetual Faith in China

by Nisha GoPalan

Hong Kong's aging billionaires have been reducing investments in China as the economy's prospects dim. The latest sale, by New World Development's Cheng Yu-tung, has a whiff of desperation.


The 90-year-old is selling 20.4 billion yuan (US$3.2 billion) of property projects owned by his private and publicly traded companies to Evergrande Real Estate Group. That brings to more than $5 billion the amount of real estate Cheng-controlled companies have sold to the indebted Chinese developer in a matter of weeks, after a 13.5 billion yuan deal agreed earlier this month.

New World Development said it will book gains on the disposal of the projects it's selling in the cities of Guiyang and Chengdu, for which Evergrande is paying 7.3 billion yuan. Still, the sales also have shades of a giveaway. Evergrande has the distinction of being among the most leveraged property firms in China. Its net debt-to-equity ratio reached a record 121.8 percent at the end of June, well above the 83 percent for other Hong Kong-listed real estate companies. Evergrande's total debt-to-equity ratio also exceeds the average for developers traded in Shanghai.

Evergrande's Higher Debt Burden
The property company's debt-to-equity ratio exceeds the aggregate for listed Chinese real estate

Source: Bloomberg
Evergrande's debt profile might be no cause for concern, were Cheng's companies receiving cash. Instead, the company will pay just 1.5 billion yuan up front for the Guiyang and Chengdu projects, with the remainder financed by perpetual bonds sold to New World. 
The Chinese developer is paying a coupon of 9 percent on the securities. That's higher than the 7 percent proposed initially, though an option to convert the bonds into equity was removed. Evergrande has an existing five-year dollar bond that pays 12 percent.
Evergrande has been a leading issuer of perpetual bonds, which were allowed by China only in 2013 and which tend to be shunned by fund managers despite their high interest rates. The securities never have to be repaid and are classed as equity. Counting them as debt, Evergrande's net debt to equity ratio at the end of June would have been 292 percent.

In its Dec. 29 stock exchange filing, Evergrande noted the favorable prices and ``favorable term of payment'' for the Guiyang and Chengdu projects. Chinese brokerage CICC was less sanguine, saying the acquisition ``would further add to the cash-flow uncertainty and debt-serving obligations'' of the company.

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Evergrande may just become the next "Enron" of China...

[Behappyalways]

[朝闻天下]房地产去库存调查：去年全国房地产库存7.1亿平方米
http://news.cntv.cn/2016/01/31/VIDEICRz7...0131.shtml

[Behappyalways]

What next for China's overheated property market?
http://www.bbc.com/news/business-35533056

[BlueKelah]

There may be a craze for capital city residential property but office rentals are crashing... due to bad economy? or oversupply? or both?

Superman Li ka-shing spot on again selling his Beijing/Shanghai commercial property before things get bad. 

http://www.mingtiandi.com/real-estate/fi...slides-87/
SOHO China to Sell Pudong Office Tower This Month As Profit Slides 87%

[opmi]

SZ 房價年升52%　深圳居民月薪1.8萬買不起樓
http://hkm.appledaily.com/detail.php?gui...e=20160310

[BlueKelah]

SZ 房價年升52%　深圳居民月薪1.8萬買不起樓
http://hkm.appledaily.com/detail.php?gui...e=20160310

Tide is turning??

A chill descends over Shenzhen’s formerly red-hot housing market

The skyrocketing Shenzhen housing market cooled off in March as transaction volumes saw a marked slowdown, signalling an abrupt turn in market sentiment.
Total transactions by area in the nation’s most expensive city decreased 24 per cent to 89,400 square metres last week over the prior week, and fell 10 per cent year on year, according to China Index Academy. That compares to at least 25 per cent year on year growth in three other first-tier cities of Beijing, Shanghai and Guangzhou.
Over the weekend, mainland publication The Paper reported that second hand home prices were falling, citing the example of a flat that recently sold for a 2 million yuan (HK$2.4 million) discount, representing a 12 per cent cut in price, as the investor who bought the property wanted to cash out as soon as possible.
“The sell off in the second hand market is an important signal to the market, and that can spread to primary market,” said Han Shitong, deputy director of the Guangdong Real Estate Industrial Research Association.