Property News

Source : telegraph.co.uk Read more…British microchip factory faces shutdown if China deal approved, ministers warned

Sunac was supposed to repay 400 million yuan in a second instalment payment on the bond on June 30. Source : South China Morning Post Read more…Sunac China may miss instalment payment on 4 billion yuan bond as lockdowns pile pressure on beleaguered Chinese developer

Source : telegraph.co.uk Read more…Brussels ‘holding the City to higher standard than communist China’

Source : telegraph.co.uk Read more…China swoops on cheap Russian oil as Western supplies dry up

Guangzhou R&F Properties is seeking investors’ consent to extend the maturity dates of 10 of its offshore bonds worth US$5.16 billion due between now and 2024, to avoid defaults. Source : South China Morning Post Read more…China’s property crisis: Debt-laden Guangzhou R&F Properties seeks extension on 10 offshore bonds worth US.16 billion

Prices of new residential units in the mainland’s four biggest, wealthiest cities increased 0.4 per cent in May, compared to 0.2 per cent in April, though the broader market remains in the doldrums. Source : South China Morning Post Read more…New home prices in China’s tier-1 cities rise at faster pace as relief […]

China’s fourth-largest developer by sales, Sunac plans to meet creditors this week and propose a delay in the payment of a 2.3 billion yuan (USS$345 million) bond due on next Monday. Source : South China Morning Post Read more…Sunac, China’s fourth-largest developer by sales, to delay payment of US5 million onshore bond due […]

China Railway Construction Investment Group said that it plans to sell 49 per cent of its equity in an Evergrande-controlled enterprise, Evergrande Real Estate (Shenzhen), for a minimum of US$398.8 million. Source : South China Morning Post Read more…Evergrande loses ally after state-owned China Railway puts its stake in real estate unit up […]

State-owned Dajia Insurance is tapping advisers for a potential sale of its luxury hotels in the US to take advantage of surging travel demand, people familiar said. Source : South China Morning Post Read more…China’s Dajia weighs US billion sale of US luxury hotels including Four Seasons, Montage to cash in on travel […]

A dozen shopping malls owned by some of Hong Kong’s top developers join 2.6 million businesses in Shanghai in resuming normal operations from June 1. Source : South China Morning Post Read more…Shanghai ends lockdown: Hong Kong developers reopen 12 shopping centres as China’s commercial hub swings back to life after two-month hiatus

A cut in mortgage rates announced on Friday last week, coupled with lower down payment requirements for first-time buyers, could revive Chinese home sales, analysts said. Source : South China Morning Post Read more…China mortgage rate cut, lower down payment requirements could save homebuyers 10 per cent in monthly instalments, revive home sales

While the popularity of hybrid working in the UK and US has tested the resiliency of traditional offices, corporate culture has been slower to change in. China Demand for office space remains strong, even as citywide lockdowns force firms to take flexible working more seriously. Source : South China Morning Post Read more…Why […]

Anxious to avoid the civil unrest that would almost certainly follow a collapse in the housing market, local authorities are relaxing their stranglehold on the property sector. But will it be enough? Source : South China Morning Post Read more…China’s property crisis: who and what will save the indebted developers in the world’s […]

Declining prices and contracting transactions underscore why China’s banking regulator and banks are cutting their mortgage rates in cities like Tianjin to revive the stagnating property market. Source : South China Morning Post Read more…China’s April new home price index falls for the first time in seven years as Covid-19 adds to the […]

Persistent lockdowns and hardening political rhetoric suggest China’s zero-tolerance approach to Covid-19 will stay in place. Collapsing demand, falling middle-class income, supply chain disruptions and a weakening yuan will have consequences that ripple across the globe. Source : South China Morning Post Read more…How China’s zero-Covid policy is tipping the world into recession

The company failed to make an interest payment and expects to miss payments on three additional notes, as it struggles to contend with a dramatic drop in sales and China’s “three red lines” policy. Source : South China Morning Post Read more…Sunac China Holdings defaults on US1.6 million bond, snared by ‘three red […]

The developer, shut out of funding markets by Beijing’s ‘three red lines’, is giving its creditors more time to accept an exchange offer on two of its bonds as China’s Covid-19 measures batter the market. Source : South China Morning Post Read more…Zhongliang, unable to borrow because of China’s ‘three red lines’, pushed […]

The debt sold by LGFVs have filled in the vacuum of high-yielding debt sold by developers, as a sluggish real estate market and a record bout of defaults and missed payments deterred many global investors. Source : South China Morning Post Read more…China’s LGFV bonds to top offshore dollar debt issuers in 2022 […]

China Evergrande Group’s creditors have approved its plea to defer paying on two yuan-denominated bonds totalling 20 billion yuan (US$3 billion) to early November. Source : South China Morning Post Read more…China Evergrande gets six months’ relief as creditors agree to defer interest payments on two onshore bonds

China’s April new home prices grew at a slightly slower pace from a month earlier as lockdown kept homebuyers away. Source : South China Morning Post Read more…China’s new home prices in April rise at a slower pace as Covid-19 lockdowns force developers to shut sales offices

The heavily indebted developer, chaired by Hui Ka-yan, will kick off a five-day holiday promotions campaign from April 30 during what is traditionally a golden week for property sales. Source : South China Morning Post Read more…China Evergrande crisis: developer to offer 2,000 completed flats in Labour Day sales push that will test […]

China’s property easing measures have reached Shanghai, the site of its worst Covid-19 outbreak, as Beijing tries to bolster the world’s second-largest economy. Source : South China Morning Post Read more…Lingang free-trade zone lowers bar for home purchases, as China’s property easing measures arrive in Covid-19 ravaged Shanghai

The premium on parcels of land in eight major cities that completed their first round of auctions for the year was up from 2021 as home builders went higher with their bids. Source : South China Morning Post Read more…China’s developers bid more for land in sign supportive measures may be lifting bruised […]

Beijing has watched silently without much resistance as some mainland cities begin to dismantle home-buying restrictions to revive the property market. Source : South China Morning Post Read more…China’s city governments test Beijing’s cautious policymakers by overturning rules to revive floundering housing market

A liquidity crisis has called into question the way Chinese developers financed and built homes, and shattered confidence among homebuyers and investors. With Xi Jinping prioritising affordable rental housing amid a ‘common prosperity’ push, however, investors could do worse than align themselves accordingly. Source : South China Morning Post Read more…Rental market boom […]

Several Chinese property developers have reported plunging 2021 profits, as a clampdown on home prices combined with dimming economic prospects to deter buyers from committing to big-ticket purchases during the Covid-19 pandemic. China Vanke, the country’s third-largest real estate company by sales, said its core net profit halved to 22.5 billion yuan (US$3.54 billion) […]

Hong Kong developer Kerry Properties, which owns two shopping malls in Shanghai, said it is looking at ways to support its tenants and alleviate the impact of the city’s lockdown. “We recognise this is a very challenging time in Shanghai for everyone,” the home builder said in an email to the Post. “We are […]

China’s largest property developer Country Garden Holdings posted another year of profit decline as cracks widened in the country’s US$1.7 trillion housing market. The Shenzhen-based company, ranked at the top of its industry by sales in China, reported on Wednesday a core net profit of 26.93 billion yuan (US$4.2 billion) in the 12 months […]

Chinese developer Longfor Group Holdings has posted a profit gain of 20 per cent for last year, managing to weather a crisis in China’s property industry triggered by defaults among some of its heavily indebted peers.Chongqing-based Longfor said its core profit reached 22.44 billion yuan (US$3.52 billion), up by a fifth from 2020. The […]

The woes of Chinese developers are far from over, with major companies hit by fallout from credit downgrades and their failure to report results on time, forcing many to seek extensions on debt deadlines.S&P Global Ratings said on Wednesday that it had withdrawn its B- long-term issuer credit rating on Sunac China Holdings, the […]

China Evergrande Group said it would delay the release of its 2021 financial results, as the world’s most indebted developer engages with investors to overhaul a sprawling business with 1.97 trillion yuan (US$310 billion) in liabilities.Evergrande said it would not be able to publish its 2021 financial results by the March 31 deadline, as […]

Chinese Estates Holdings, a major ally of heavily-indebted Chinese developer China Evergrande Group controlled by the family of fugitive property tycoon Joseph Lau Luen-hung, swung to a loss last year as China’s housing market soured.The Hong Kong developer, chaired by Joseph Lau’s son Lau Ming-wai, 41, reported a loss of HK$3.5 billion (US$447 million) […]

China held its benchmark lending rate despite concerns over a cooling economy, the central bank confirmed on Monday.The one-year loan prime rate (LPR) – on which most new and outstanding loans are based – remained at 3.70 per cent at the March fixing.The five-year LPR – which is a reference rate for mortgages – […]

The decline in China’s new home prices narrowed last month, as easing measures rolled out to revive its ailing US$1.7 trillion housing market took effect.The average price of new homes in the 70 cities covered by the National Bureau of Statistics (NBS) fell 0.1 per cent in February, down from the 0.3 per cent […]

Soho China is offering a portion of commercial properties in Beijing and Shanghai at a deep discount to raise cash and pay down debt, seeking to capitalise on early signs of rebound in the pandemic-hit market.The developer will sell about 32,000 square metres from its portfolio in the two cities at a 30 per […]

Real estate developments that combine preservation of historic landmarks are becoming popular in China, with some companies taking a keen interest in such projects.Swire Properties is working on a 10 billion yuan (US$1.58 billion) development in the historic mainland Chinese city of Xian, after its urban regeneration projects in Chengdu and Shanghai.The Hong Kong-listed […]

Women made up about half of all homeowners in mainland China last year, paying 4.7 million yuan (US$744,073) on average for flats in the country’s first-tier cities, according to a survey conducted by online property agency Beike Zhaofang.The number of female homeowners had risen from 45.5 per cent in 2017 to 48.6 per cent […]

Delegates from China’s property developers, the nation’s largest debtors, are likely to be feeling the pressure when they show up at the Great Hall of the People for the annual legislative meeting in Beijing in the coming days.Six of the 13 real estate company chairmen attending the “two sessions” will be representing developers that […]

House hunters in China have been coming off the sidelines to take the plunge, tempted by big monthly savings as mortgage rates have dropped across the country.Wang Ning and his wife finally decided to buy a 3 million yuan (US$480,000) two-bedroom home in Nanjing’s downtown when they found the total amount they needed to […]

A widely-anticipated push by China’s government to boost construction to stabilise growth in the world’s second-largest economy has yet to materialise, a blow to hopes that Chinese stimulus would lift global growth early on this year.The Communist Party has made its stimulus goals clear in recent months, pledging to “front-load” pro-growth policies in 2022, […]

China Evergrande Group lost control of some of its property projects around the country, as several state-owned developers picked away at its assets while the heavily indebted builder teeters on the brink with more thanUS$300 billion of total liabilities.Evergrande Fairyland, a theme park subsidiary in the Nansha district of the Guangdong provincial capital of […]

Hong Kong property developer New World Development (NWD) said lower rent income following a government plan allowing small firms to defer payments for up to six months will be offset by strong revenue in mainland China.The locally-listed developer’s interim underlying profit, excluding changes in the valuations of properties, rose 4.8 per cent from a […]

More mainland Chinese cities are taking steps to shore up the property market as local governments and lenders eased the requirements on down payments and mortgage financing to arrest the worst slump in home sales in a decade.In Heze, a city in northern Shandong province, four major banks have lowered the minimum deposit for […]

Developers’ woes will make refinancings harder, and more defaults should be expected Source : ft.com Read more…China junk bonds/Zhenro: shock warning shakes ratings’ credibility

Shenzhen’s housing market has gone into deep freeze, as a mixture of anti-speculation measures and a slowing economy sent the market contraction into overdrive, causing sales of lived-in homes in the secondary market to plunge to a 15-year low.Sales of second-hand homes plunged 60 per cent to 40,699 last year, from 95,273 transactions in […]

The chairman of China Vanke, the country’s third-biggest home seller by sales, issued a clarion call to his staff, urging them to gear up for a bruising battle that may make or break the company this year.“We are on our last legs, which means there are no other options,” said Yu Liang during the […]

China Evergrande Group has set the target of building 600,000 homes in 2022, as the embattled developer leans on its construction operation to lift it out of its debt quagmire.Evergrande plans to fully restore its construction operations this month, the Guangzhou-based developer’s chairman Hui Ka-yan said during an internal meeting on Sunday, according to […]

China’s biggest property developers are still struggling to sell homes, as a resurgent Covid-19 pandemic combined with a slowing economy to deter big-ticket investments, offering little respite to the most leveraged among them.The collective sales value of China’s top 100 developers fell 41 per cent in January from last year to 526.6 billion yuan […]

China Evergrande Group’s Palace of Versailles-like project in Yuen Long – used as a collateral to restructure part of the company’s massive debt – was recently seized by creditor Oaktree Capital, which has appointed receivers for the asset.The Shenzhen-based developer, which is saddled with US$310 billion in total liabilities, said it “is seeking legal […]

China’s publicly traded developers soared on the stock market, as the first cut in mortgage rates in two years combined with a government plan to grant them easier access to sales receipts brought much-needed relief to their cash crunch and mounting debt.The Hang Seng Mainland Properties Index, which tracks the performance of property developers […]

China is drafting nationwide rules to make it easier for property developers to access funds from sales still held in escrow accounts in its latest move to ease a severe cash crunch in the sector, four people with knowledge of the matter said.Regulatory curbs on borrowing have driven the sector into crisis, highlighted by […]

China’s US$1.7 trillion housing market is getting some positive vibes from local government officials in pockets of locations, helping property developers recover from the crushing effects of policy tightening in the industry.Foshan in southern Guangdong province would be “open to and welcome investment by property firms” and would take steps to help lower their […]

Homeowners’ struggles demonstrate challenge of cooling sector without damaging wider economy Source : ft.com Read more…China slowdown highlights potential pitfalls of property reforms

The prices of China’s newly built homes declined at a slower rate in December, offering a bit of relief to dozens of property developers that are struggling with a cash crunch and mounting debt.The average price of new homes across 70 cities fell by 0.28 per cent in December from a month earlier, a […]

The chill sweeping through China’s housing market is being felt in Shenzhen, China’s Silicon Valley. There are few takers for houses in the once red-hot market as buyers are watching from the sidelines since the start of this year.The 353-unit Shangjing, the year’s first launch on January 2, has been the biggest flop. The […]

China’s crushing “three red lines” policy against home developers continues to claim new victims as Yuzhou Group turned to creditors for forbearance on more than US$5 billion of debt from years of unrestrained offshore borrowing.The group is offering sweeteners to bondholders to delay repayment by a year on two dollar-denominated bonds worth US$582 million […]

Hong Kong’s biggest developers continue to buy prime land sites in top-tier cities in mainland China, as they take advantage of the general malaise among competitors that are struggling to survive an unprecedented debt load in the industry.Kerry Properties, controlled by the Malaysian billionaire Robert Kuok, paid 13.3 billion yuan (US$2.1 billion) for four […]

Heavily indebted developer China Evergrande Group has moved from its previous headquarters in Shenzhen to its own property, in an attempt to save costs as it battles a financial crisis.The company’s logo on the building where it was previously housed was seen being taken down on Monday.“To save costs, [Evergrande] went through lease cancellation […]

Beijing’s loan limit for real estate companies, widely known as the “three red lines”, which has pushed many developers to the brink, has been partially relaxed, according to a report by a state-backed media outlet. Shares of property firms rose in Hong Kong.Analysts, however, said they do not expect an immediate impact on the […]

A Shanghai construction materials supplier with links to the Shimao Group has defaulted on a US$101m project loan guaranteed by the Hong Kong-listed group, adding to its recent debt burden.Shanghai Shimao Construction Company failed to repay the proceeds as a guarantor for a project that raised funds for Shanghai Qianyi Construction Materials Company, according […]