China Property

China’s property market has surged in recent years. After prices jumped 25 per cent in 2009 alone, the central government imposed austerity measures, including lending curbs, higher mortgage rates and restrictions on the number of homes each family can buy.

More signs of stabilisation in China's property market but lower-tier cities still struggle

Prices for new homes in Shenzhen rose by 0.3 per cent in January from the previous month. Photo: Bloomberg

Supportive policies for homebuyers have helped trim the number of major cities suffering price falls, but sharp declines in the lower-cities last month point to a deepening polarisation in the mainland market.

Tuesday, 17 February, 2015, 5:36pm 3 comments

Developer Kaisa's shares tumble on US$2b frozen asset disclosure

Kaisa’s problems rattled Asian corporate debt markets at the start of this year after it was in technical default on a HK$400 million loan from HSBC and was late on a US$26 million bond coupon payment. Photo: Reuters

Shares at Kaisa Group Holdings fell by more than 9 per cent on Tuesday morning as the troubled Shenzhen-based property developer revealed in a stock filing that assets frozen by courts to protect creditors soared to more than US$2 billion.

Trading in Kaisa shares was halted on Monday and resumed on Tuesday.

17 Feb 2015 - 10:44am

Sunac arm buys stake in Shanghai developer

Shanghai Fengdan holds substantial interests in property developments in Shanghai’s Pudong district. Photo: Reuters

A subsidiary of Sunac China Holdings will acquire 37.85 per cent in equity and debt in Shanghai Fengdan Lishi Real Estate Development for 1.3 billion yuan (HK$1.61 billion), the company said in a regulatory filing on Tuesday.

17 Feb 2015 - 9:51am

Trading halted in debt-strapped Kaisa shares pending announcement

Kaisa Shenzhen City Plaza, a flagship development of the troubled constuction company. Pic: SCMP

Troubled Shenzhen-based property developer Kaisa halted share trading on Monday pending the release of inside information on the company, according to a filing at the Hong Kong Stock Exchange.

Shares of the company closed at HK$1.71 on Friday.

16 Feb 2015 - 10:02am

Recovery in China's home market still weak

Home prices in Shanghai rose for a fourth consecutive month in January, edging up to 34,278 yuan per square metre from 34,269 yuan in December. Photo: Reuters

Prices of existing homes inched up in Beijing and Shanghai last month, but falling sales indicated recovery in China's housing market remains fragile, according to the latest readings of the SCMP-Century 21 index.

13 Feb 2015 - 10:02pm

Chongqing leads decline in new home prices in China

Beijing bucked the declining trend in the index with prices of new homes posting an increase last month. Photo: Reuters

China's housing market entered the year on a weak note, with sales falling by almost a third last month in 10 key cities monitored by the SCMP-Creda index and prices of new homes dropping the most in more than a year in Shanghai and Chongqing.

13 Feb 2015 - 9:52pm

Kaisa stock takes a hit after note on bonds

Troubled Chinese developer Kaisa has warned that lenders and bondholders should not expect payments of principal and interest "according to existing terms". Photo: Reuters

Kaisa Group’s bond and share prices took a hit on Thursday after the troubled mainland developer hinted at renegotiating its debts.

17 Apr 2015 - 3:55pm

Developers snap up Beijing plots

Market analysts attribute the strong land sales so far this year to major developers shifting their investment focus to first-tier cities such as Beijing. Photo: AP

Beijing’s land market is warming up again, with three mixed-use sites sold for 3.6 billion yuan on Tuesday, rasing the total land sales to 40.9 billion yuan since January, according to mainland property data provider SouFun Holdings.

18 Apr 2015 - 6:17pm

Evergrande Real Estate offers 12pc for bond

Evergrande Real Estate is offering a much higher interest rate than its peers as it taps the market at a time of uncertainty over Chinese developers. Photo: Reuters

Evergrande Real Estate Group will pay a much higher interest rate than peers as it taps the offshore bond market amid the uncertainty over China’s property market in the wake of developer Kaisa’s debt problems.

The Guangzhou-based developer announced that it had priced its five-year US$1 billion senior notes due 2020 at an annual interest rate of 12 per cent.

17 Apr 2015 - 3:55pm

Metro malls offer rich returns for Golden Wheel Tiandi

Golden Wheel Tiandi founder and chairman Wong Yam came to Hong Kong in 1980. Photo: Edward Wong

Wong Yam-yin, the founder and chairman of Golden Wheel Tiandi Holdings, arrived from Indonesia in 1980 to set up an office for his family’s hardware trading business. He soon found that most entrepreneurs had gained their wealth from investing in real estate. Inspired by their success, Wong started investing in the property market.

11 Feb 2015 - 6:44am

Greenland to diversify into internet finance

Greenland Hong Kong chairman Chen Jun earlier told the South China Morning Post that the company targeted annual sales of 50 billion yuan by 2018. Photo: Jonathan Wong

Greenland Hong Kong, the Hong Kong-listed unit of the mainland’s largest developer by sales, announced it would diversify into internet finance this year, hoping to capitalise on the cyber world to offer financial services to cash-strapped mainland developers.

11 Feb 2015 - 6:11am

Shanghai office deals to exceed Beijing

Office investment volumes in Shanghai have bucked the country’s real estate downtrend. Photo: SCMP

Office transaction activity in Shanghai will surpass Beijing’s this year as investors are still looking to cash in on the city’s free trade zone.

11 Feb 2015 - 6:01am

Golden Wheel Tiandi on a roll with metro projects

Chairman Wong Yam-yin says his company has acquired seven residential plots since last year taking advantage of the downturn. Photo: Edward Wong

For Golden Wheel Tiandi Holdings, the strategy of developing properties close to metro stations on the mainland has paid off in a market downturn.

11 Feb 2015 - 5:57am

Kaisa shares close up 17.6 per cent following rescue by white knight

Kaisa says it has received 28 billion yuan in payment demands from creditors. Photo: Reuters

Debt-ridden mainland developer Kaisa saw its shares soar on Monday  after a white knight rescued it from the verge of bankruptcy.

But Kaisa’s future remains clouded, with the company saying creditors were demanding immediate repayment of about 28 billion yuan (HK$34.7 billion).

9 Feb 2015 - 5:18pm

Shares of Sunac China jumps 5pc after Kaisa rescue

Troubles at Kaisa began when its flats were barred from sale by the Shenzhen government. Photo: Langi Chiang

Shares of Sunac China opened 5 per cent higher on its first day of trading after taking over the cash-strapped Shenzhen-based developer Kaisa Group for HK$4.55 billion.

Trading in the stock had been suspended on January 30, the day Sunac bought 2.59 billion Kaisa shares at HK$1.8 apiece.

Sunac’s shares rose to HK$7.3 before last trading at HK$6.94 on January 30.

9 Feb 2015 - 7:40pm