In today’s look at the real estate headlines from around the region, a Korean pension fund is about to benchmark demand for Aussie sheds and Morgan Stanley sees Hong Kong homebuyers losing their property lust. Also in the news, you can now buy a Shenzhen commercial project on JD.com for $1.8 billion and a Singapore shopping centre could also be yours.
Ownership of a series of industrial properties controlled by Australian fund manager Dexus could be shaken up as the National Pension Service of Korea tests market interest for a stake in an almost A$1 billion ($660 million) fund managed by the local group.
The stake being offered represents 50 percent of a portfolio of 20 assets located in two large scale, institutional-grade industrial precincts. They are Quarry East at Greystanes in western Sydney and the Dexus Industrial Estate in Truganina in west Melbourne. Read more>>
Morgan Stanley cut its full-year home price growth projection for Hong Kong from 10 percent to 8 percent as transactions and investment demand slow.
The bank noted that while Hong Kong residential prices have risen by approximately 7 percent since reaching a trough in December, a slowdown in the market is anticipated due to a decline in transaction volume and weak investment demand, suggesting that the upward trend may pause temporarily. Read more>>
Troubled Chinese property developer Shimao Group is auctioning its flagship Shimao Shenkong International Centre in a further effort to pay off its debt, at a starting price of RMB 13 billion ($1.8 billion).
The project includes the usage rights to 12 plots of land as well as attached buildings in Shenzhen’s Longgang district. The auction will start on July 4 with an assessed price of RMB 16.3 billion and a mark-up of RMB 65.2 million for each bid, according to the auction platform of e-commerce giant JD.Com. Read more>>
Singapore’s DFI Retail Group is seeking a buyer for the four-decade-old Jelita Shopping Centre at 293 Holland Road. It has appointed JLL as the exclusive marketing agent to conduct an expression of interest (EOI) exercise for the two-storey, 999-year leasehold retail mall at the corner of Holland Road and Jalan Jelita.
The guide price for the neighbourhood retail hub is S$85 million ($64 million), which works out to S$2,528 per square foot on the existing net lettable area of 33,621 square feet, which is home to a Cold Storage supermarket and other community shopping favourites. Read more>>
It was a fast and furious decline that puts even China Evergrande Group to shame. Dalian Wanda Commercial Management Group Co, the country’s biggest shopping mall operator, issued $800 million in bonds earlier this year. It was the first junk-rated developer that managed to tap into the offshore market since a record wave of defaults in 2022. By the end of May, Wanda’s February issue was already hovering at around 40 cents to a dollar, and investors have not been paid a single coupon yet.
The alarm bells started ringing in late April when Wanda said a planned initial public offering in Hong Kong of its property management subsidiary would not be happening any time soon. China’s stock watchdog needed more time to work out detailed equity-raising policies for real estate developers, the company said. Read more>>
Hong Kong’s office towers, among the most expensive commercial real estate in the world, have never been this empty.
Billionaire Li Ka-shing’s trophy asset at Cheung Kong Center is about 25 percent vacant, while his latest project underway across the street with sweeping views of Victoria Harbour has signed up one tenant. Fellow tycoon Lee Shau Kee’s curved glass The Henderson building under construction nearby is just 30 percent leased. Rents and sale prices are cratering. Read more>>
Gaw Capital, a real estate private equity firm, wants to get Hongkongers on the fast track to home-ownership in mainland China.
Amid weak property demand in China, the firm is offering buyers in Hong Kong a discount on 30 flats at The Timezone, a residential development in the city of Foshan in Guangdong province, where the high-speed train that departs from Hong Kong’s West Kowloon station ends. Read more>>
Sun Hung Kai Properties unveiled the second price list of its new project in Hong Kong’s Tuen Mun area yesterday, keeping the price of the latest batch of Phase 2A of Novo Land largely steady with the last one. This came as the property market remained lackluster with only four units sold in the 10 major housing estates over the weekend.
SHKP’s latest release includes 93 flats priced HK$13,888 ($1,772) per square foot after discounts on average. This is 2.1 percent above the HK$13,598 of the first batch, taking into account different views and levels. Read more>>