China Property Market
28-10-2014, 11:48 PM
If Developers up the price of 2nd phase launch , would they reward the developers ?
Can win buy cannot lose !
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
31-10-2014, 07:37 AM
China govt supports housing market again in U-turn
31 Oct5:50 AM New York WITH China headed for its slowest full-year expansion in a generation, the government has listed housing as one of the six consumption areas to be encouraged after years of trying to cool the property industry. China will "stabilise" property-related consumption and make it easier for people to access mandatory housing savings, the State Council said in a statement late on Wednesday after Premier Li Keqiang presided at a regular meeting. The last time China's State Council documents mentioned "stabilising" housing consumption was in April 2009, when the government was rolling out a massive stimulus plan to shield the economy from a global slowdown. China's GDP expanded 7.3 per cent in the third quarter this year from a year earlier, the weakest pace in more than five years. "The announcement marks a U-turn in stance towards the property sector after years of attempts to cool it down," Dariusz Kowalczyk, a Credit Agricole CIB strategist in Hong Kong, wrote in a note on Thursday. It's the first time in recent years that the central government officially declared direct support for the housing market, according to Credit Suisse Group AG. New-home prices fell in 69 out of 70 cities monitored by the government last month from August. Property prices may decline by as much as 10 per cent this year and the slump may extend into 2015, according to SouFun Holdings Ltd. The "slowdown in the property sector has been a major drag on growth", Ting Lu, Bank of America Corp's head of Greater China economics in Hong Kong, wrote in a note on Thursday. The Chinese government, which started tightening lending to property developers and buyers in April 2010 to prevent asset bubbles from expanding, has also signalled plans to reverse course on home financing, with the central bank on Sept 30 relaxing mortgage rules for home buyers who have paid off existing loans. "The government's stance on the property market has changed to encouragement from caution," said Johnson Hu, a Hong Kong-based property analyst at CIMB Securities Research. "It realises the importance of real estate consumption. Most cities no longer need curbs on housing-price increases." BLOOMBERG
04-11-2014, 11:40 PM
http://www.shanghaidaily.com/business/re...aily.shtml
New home sales at 51-week high By Cherry Cao | November 4, 2014, Tuesday | Print Edition SALES of new homes in Shanghai surged to the highest in nearly a year last week as home-buying sentiment improved due to favorable central bank measures, industry data showed yesterday. The purchases of new homes, excluding government-funded affordable housing, rose 25 percent from the previous week to 334,900 square meters, or a 51-week high, Shanghai Uwin Real Estate Information Services Co said in a report. “It was the fourth consecutive week that seven-day sales remained above 240,000 square meters as sentiment improved among home seekers after an earlier central bank announcement of a cut in mortgage rates and minimum down payment for some buyers,” said Huang Zhijian, chief analyst at Uwin. Buyers who own a home and had paid off their mortgage will be considered first-home buyers and enjoy discounted mortgage rates of up to 30 percent off the benchmark lending rate, the People’s Bank of China said on September 30. The new rule for down payments is that all first-home buyers can pay as little as 30 percent of the total price. The average cost of the new homes rose 7.2 percent week over week to 28,436 yuan (US$4,647) per square meter, Uwin data showed. Last week’s spike also helped boost October sales to 1.09 million square meters to register as the highest monthly volume so far this year, according to Uwin. The sales surged 42.5 percent from September though they fell 22 percent year on year. Lu Qilin, director of research at Shanghai Deovolente Realty Co, said: “We expect sales to continue to rise while a price hike is unlikely, mainly due to the high level of inventories.” As of yesterday, there were more than 12.5 million square meters of new homes for sale in Shanghai, according to the city’s official real estate website fangdi.com.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
07-11-2014, 11:29 PM
A closed-loop system gets more and more inter-connected with one another....Reminds me of the potential daisy chain effect of derivatives that Warren Buffett talked of many years ago (and eventually did arrive in GFC2008)
China Home Buyers Rushing Online to Finance Down Payments Qian Kaishen and his wife almost gave up in August on buying a bigger home. As apartments at Shanghai Villa, a project they liked near the city’s Hongqiao Airport, started selling, the money they had saved for the deposit was tied up in a 5 percent-return investment. Then property agency E-House China Holdings Ltd. offered the couple a 280,000 yuan ($45,546) one-year bridge loan at zero interest. The loan came from online investors through E-House’s Internet finance website. It covered about half the down payment and was just enough to make up the shortfall. “Now we’re good both on our investment and home purchase plan,” Qian, 31, who works for a local logistics company, said by phone from Shanghai. “We would’ve given up if it weren’t for the loan. I don’t like borrowing from my parents or relatives, especially because we have the money.” E-House is joining peer-to-peer lenders to finance down payments for buyers struggling to scrape together a deposit after home prices had tripled since 2000. Mortgage lending remains tight, even after the central bank eased its policy in September, as banks anticipate an extended property market decline because of a high supply of housing, according to Standard Chartered Plc. http://www.bloomberg.com/news/2014-11-04...ments.html 
10-11-2014, 11:30 PM
Li Ka-shing Sells 2 Shanghai Buildings for $493 Million
Asia’s richest man continued to sell off his China real estate holdings last week when a property company controlled by Hong Kong billionaire Li Ka-shing was acquired by China’s Oceanwide Holdings. According to a statement to the Shenzhen stock exchange dated November 7th, China Oceanwide, a listed real estate investment firm belonging to Chinese billionaire Lu Zhiqiang, agreed to buy Hutchison Whampoa’s 71.36 percent stake in Hutchison Harbour Ring Ltd for HK$3.8 billion ($621 million). Hutchison Whampoa is one of Li Ka-shing’s primary holding companies, and Hutchison Harbour Ring Ltd owns two commercial buildings in Shanghai, Harbour Ring Huangpu Centre and Harbour Ring Plaza. Following the transaction Hutchison Whampoa will have completely divested itself of its shares in Hutchison Harbour Ring Ltd, and Li Ka-shing will have sold off his fifth set of China real estate assets in the last fourteen months. Read More Here Superman continues to cash out... Another vote of confidence for China property.
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
11-11-2014, 02:25 PM
(10-11-2014, 11:30 PM)BlueKelah Wrote: Li Ka-shing Sells 2 Shanghai Buildings for $493 Million Ha-ha ! When ARA sells China assets, it is being reported as “LKS is exiting or selling down China assets”. ADF-I of ARA has been in divestment phases since 2012 - all China assets divested by it had been reported as "LKS selling down China assets." LKS owns about 53% of CKH (Cheung Kong Holdings) CKH owns 7.84% of ARA ARA has about 10% of equity stakes in most private funds it manages, including ADF-I For every $1,000 million worth of China assets divested by ARA’s private fund, LKS stake = 0.53 x 0.0784 x 0.10 x 1,000 = $ 4.2 million (assuming no gearing – conservative) So, it is true that whenever ARA sells, LKS sells. Whenever ARA sold X million worth of China assets, LKS stake in it is less than 0.5%. Often, it is reported as LKS sold X million worth of assets. Similarly, when ARA buys, LKS buys. Indeed, CIP, another China specific private fund managed by ARA is in acquisition phase – has bought Ocean Tower in Shanghai and Dalian Tianxing Roosevelt Center in Dalian.. The truth is when ARA bought - it has not been reported as “LKS is buying China assets” – what a joke ! http://www.mingtiandi.com/real-estate/cr...7-billion/ http://www.thestandard.com.hk/news_detai...con_type=1
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
11-11-2014, 05:28 PM
Why don't they say those who buy frim Li are positive about the property market in China , if not why should they buy ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
14-11-2014, 07:36 AM
Slide in China property sales eases to -1.6% in October
But Jan-Oct investment growth in sector slows to 5-year low of 12.4% BT_20141114_CHPROP14_1366403.jpg With property sales showing signs of improvement, Beijing's efforts to boost the ailing sector may be starting to have an effect. PHOTO: REUTERS 14 Nov5:50 AM Beijing GROWTH in China real estate investment slowed further in the first 10 months of 2014, but property sales showed some signs of improvement, indicating Beijing's efforts to boost the ailing sector may be starting to have an effect. Property investment, which affects more than
14-11-2014, 02:09 PM
House buyers’ mood up
By Cherry Cao | November 14, 2014, Friday | Print Edition THE value and volume of new home sales in China fell more slowly in the first 10 months of this year as sentiment among buyers improved in October, the National Bureau of Statistics said yesterday. New houses sold across the country fell 9.9 percent in the January-October period from a year earlier to 4.63 trillion yuan (US$755 billion), according to a statement on the bureau’s website. In the first three quarters, the value declined 10.8 percent year on year. Meanwhile, 776 million square meters of new houses were sold during the 10-month period, down 9.5 percent from a year ago. Between January and September, the volume declined 10.3 percent year on year. “The central bank’s announcement in late September of a cut in mortgage rates and minimum down payment levels for some buyers did help boost momentum in the country’s housing market last month,” said Lu Qilin, a researcher at Shanghai Deovolente Realty Co. “The latest government move is leaving a quite significant psychological impact on home seekers though at the moment not so many of them can benefit from the policy change.” Real Estate
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
15-11-2014, 08:36 AM
State-backed developers moving into Guangzhou
15 Nov5:50 AM Hong Kong CHINA'S state-backed developers are making unprecedented investments in Guangzhou, as the private firms that dominated the wealthy southern city for decades grapple with tight liquidity and Beijing's crackdown on corruption. The waning fortunes of the "Guangzhou Five Tigers" - the city's big private developers - are giving state-owned enterprises the chance to muscle in on one of China's most prestigious property markets for the first time. "We expect there will be more opportunities going forward in Guangzhou because of a fairer environment under a change of political landscape," state-owned China Resources Land's chief financial officer Yu Jian told analysts last month. The so-called tigers - Agile Property, Evergrande Real Estate Group, Country Garden Holdings, Guangzhou R&F Properties and KWG Property - would no longer dominate the city, Mr Yu said, according to a company official. Guangzhou's allure lies in its higher margins and stability. The average selling price per square metre in Guangzhou from January to June was almost twice as high as the national average recorded by Country Garden and Guangzhou R&F, according to company statements. The capital of Guangdong province is also considered better positioned to withstand any housing correction because of its vast reservoir of demand, making it increasingly attractive to developers hit by a sharp downturn in the Chinese property market. But until recently, state- owned firms have avoided taking on Guangzhou's established players on their home turf. Those days are over. On Nov 10, for example, state- backed Longfor Properties entered the city of over 13 million people for the first time, buying two sites at auction for 3.78 billion yuan (S$800 million). China Resources Land, the country's ninth-largest residential developer by sales, bought two plots in Guangzhou at the same auction for 3.02 billion yuan, significantly boosting its holdings there. Other government-backed developers such as China Overseas Land & Investment (Coli), Poly Real Estate and Guangzhou- based Yuexiu Property have also expressed interest in expanding in Guangzhou, analysts said. Coli bought a plot in the city for 9.6 billion yuan in February, the most expensive acquisition out of 10 it made in the first half. Chinese developers are under intense pressure, with home prices falling for a fifth straight month in September and the economy growing at its slowest clip since the 2008 global financial crisis. Bank of America Merrill Lynch's head of Greater China property research Raymond Ngai said private developers were feeling the pinch of tighter liquidity, while those with state backing were freer to expand. "State-owned developers are keen to buy land in Guangzhou as they don't have much there. They also have the cash," he said. President Xi Jinping's crackdown on corruption is squeezing liquidity further as investors baulk at firms that could be exposed to damaging revelations, in turn narrowing private developers' financing options. "The risk makes investors more prudent," realtor Knight Frank's senior director Thomas Lam said. Already burdened with a US$475 million loan due in December, Agile Property last month revealed that its billionaire founder and chairman, Chen Zhou Lin, has been detained. While the reason for Mr Chen's detention remains unknown, it is widely believed to be related to corruption. Andy Lee, an executive with realtor Centaline, said Guangzhou-based developers were "worried about the knock- on effect" of the crackdown, and their out-of-town rivals were eager to take advantage. "This is a game-changer for Guangzhou . . . it will attract more outsiders," he said. An executive of an unlisted property company based in Guangdong province said life was simpler when developers could bribe officials with "gift cards" of up to 600 yuan each. "Things were much easier and faster before. If you ask me, I prefer how things were handled in the past," he said. Reuters |
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