China Property Market

[BlueKelah]

this is called GREED at work.

when the china property eventually comes crashing down, it will be people breaking down the door to try and get their money back lol...

[Behappyalways]

When you have married couples divorcing to circumvent the property rules, you start to ask why would a couple need 2 houses? For speculation???

[brattzz]

When you have married couples divorcing to circumvent the property rules, you start to ask why would a couple need 2 houses? For speculation???

yea, of cos,

property is still the most traditional chinese way of "spec-investment"... just be careful not to overpay/stuck in it...

this is very common in singapore too!

buy 2x-3 rooms flats from HDB's BTO cheap price at mature estates, then sell off resale at profit, or rental out, count money monthly!
stay in condo / JB bungalows,

plenty of patterns more than badmintons!

[fundamentalman]

Billionaire: Chinese real estate is 'biggest bubble in history'
by Jethro Mullen and Andrew Stevens @CNNMoneyInvest
September 29, 2016: 9:49 AM ET


Chinese billionaire warns of real estate 'bubble'
Chinese billionaire Wang Jianlin made his fortune in the country's real estate market -- and now he's warning that it's spiraling out of control.
It's the "biggest bubble in history," he told CNNMoney in an exclusive interview Wednesday.
Bubble is a sensitive word in China after the dramatic rise and spectacular crash in the country's stock market last year, which wiped out the savings of millions of small investors who thought Beijing wouldn't allow the market to drop.
After struggling to contain the fallout from the stock market debacle, China's leaders could face a similar headache in the real estate sector.
Related: IMF tells China to fix its debt problem now
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Related: This Chinese province has produced the second most billionaires in the world
"The problem is the economy hasn't bottomed out," Wang said. "If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding -- that's when we gradually reduce leverage and debts."
He says, though, that he's not worried about the prospect of a "hard landing" -- a sudden and catastrophic collapse in economic growth.
Wang's comments carry weight. He is the richest man in China, according to Forbes and Hurun Report data from 2015, and his real estate and entertainment empire brought in revenue of about $44 billion last year.
Wang has been warning of trouble in the Chinese property market for a while. His Dalian Wanda Group, which has developed huge malls and office complexes across China, has been gradually cutting back on its real estate business.

[BlueKelah]

Looks like Beijing can't make up their minds to let people speculate in property or not LOL...
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Chinese Developers Tumble Most in Five Weeks on Property Curbs

Chinese property shares took their biggest beating in five weeks after authorities in more than a dozen cities imposed restrictions to curb surging prices during a week-long holiday for the financial markets.
Poly Real Estate Group Co. and Beijing Capital Development Co. lost at least 3.9 percent, dragging down a gauge of developers in Shanghai by 2.2 percent at the midday break, the most since Sept. 1. Shanghai’s housing commission announced over the weekend steps including increasing land supply and forbidding price increases in new home pre-sales without approval, as it joined other Chinese cities in a push to ensure the real estate market is stable.
Authorities in both tier 1 and tier 2 Chinese cities such as Nanjing, Shenzhen and Fuzhou have recently announced measures to contain house-price bubbles, including specific restrictions on mortgage and down-payment policies. Home prices started to take off last year after the governments eased curbs on property purchases.

“The plunge is an initial reaction to the property curbs,” said Jingyi Pan, a Singapore-based strategist at IG Asia Pte. “Authorities are keen to tame surging prices, but we are not expecting a tumble as it will not be in their interest. Property share prices may eventually still see a climb, albeit a very slow one.”

[Bibi]

An alternative view of Chinese Property market.

"A lot of the people who are really pessimistic and predicting collapse in the property market have been saying this for a very long time, and it hasn’t happened. They also don’t seem to acknowledge some of the underlying fundamentals, including that there’s a lot of cash down, there’s no subprime, that all of the mortgages are being held to maturity by the issuing banks. The risks of a housing bubble in China are incredibly low."


Chinese Housing Market isnt a Bubble

[BlueKelah]

An alternative view of Chinese Property market.

"A lot of the people who are really pessimistic and predicting collapse in the property market have been saying this for a very long time, and it hasn’t happened. They also don’t seem to acknowledge some of the underlying fundamentals, including that there’s a lot of cash down, there’s no subprime, that all of the mortgages are being held to maturity by the issuing banks. The risks of a housing bubble in China are incredibly low."


Chinese Housing Market isnt a Bubble

Lol cash down -> have to see where the cash is from, in China cash down for property is easy to get from many "shadow" lenders.

Subprime -> high return wealth management products even sold by banks are aplenty, just different name, same thing.

Incredibly low my A$$. The bubble has already popped in many 3rd and 4th tier cities with their "ghost cities" oversupply.
If risk so low, China gov won't have had to keep trying to cool down the property market despite knowing it will impact the GDP.

China Stocks Sink Most in Six Months as Property Concerns Build

[Behappyalways]

Demand for Digging Equipment Offers Fresh Hope for Growth
http://www.caixinglobal.com/2017-03-14/101065970.html

[Behappyalways]

Shifting Foundations in China
https://www.bloomberg.com/gadfly/article...ty-profits

[opmi]

Kaisa, the first PRC developer to default on offshore bonds in 2015, has just resumed share trading. Up 80% from pre-suspension price of $1.54. Now 2.82.

At its low, Sunac said the shares were worth zero. Which is probably true during that time.

http://hkm.appledaily.com/detail.php?gui...e=20170327

佳兆業兩年蝕逾17億

財經要聞


佳兆業公佈，已達成所有復牌條件。　資料圖片
【本報訊】停牌近兩年的佳兆業（1638）公佈，已達成復牌條件，今早復牌。公司刊登近三年業績，截至2016年底財年虧損6.12億元（人民幣．下同），2015財年虧損為11.2億元，每股虧損0.119元，不派息。
受市場關注的負債問題，集團指已於2016年7月完成協議安排，將以往優先票據、可換股債券及其他境外融資交換成總值2.59億美元強制性可交換債券、共27.7億美元的5批新票據及或然價值權等。截至去年底，公司總借款達875.37億元，當中77.62億元需一年內償還，789.17億元2至5年內需償還，現金及現金等值項目108.2億元，受限制現金近57億元。公司公佈的資產負債比率為42.8%，但若按以上資料計，負債權益比率高達至少300%。2016財年收益177.7億元，按年增62.6%，毛利率增9.9個百分點至13%。