CK Asset Price Cuts Could Start HK Home Price War and More Asia Real Estate Headlines

Victor Li is offering some of the lowest prices Hong Kong has seen in several years (Getty Images)

A price cut at a CK Asset project in Hong Kong leads today’s set of headlines from around Asia’s real estate industry as analysts ponder prospects for a developer price war. Also making the list is a debt restructuring plan for China’s Yuzhou Properties and the results of the latest skirmish in a war for control of SGX-listed Sabana REIT.

CK Asset Project Seen Risking Hong Kong Housing Price War

A new home launch this past week by Hong Kong property developer CK Asset at the lowest prices in seven years has shocked the market and could intensify a price war in the financial hub, realtors said.

Home prices in one of the world’s most expensive property markets have retreated again since May after a short-lived bounce early this year from a 15 percent decline in 2022. Potential homebuyers were deterred by rising interest rates and the weak economic outlook. Read more>>

Mainland Developer Yuzhou Announces Debt Restructuring Plan

Chinese developer Yuzhou Group announced its debt restructuring plan, joining industry peers Evergrande Group, Sunac China Holdings, and Shimao Group, who are also seeking a revamp as sector conditions continue to deteriorate even as authorities roll out supportive policies.

The Hong Kong-listed property firm on Sunday night said in a filing that it is in active discussions with its offshore creditors and has formulated a preliminary restructuring proposal. Read more>>

ESR Group Loses Battle Over Sabana REIT Manager in Singapore

Unitholders of Sabana Industrial Real Estate Investment Trust voted to remove Sabana Real Estate Investment Management as its manager at its extraordinary general meeting on Monday.

The unitholders were voting on two resolutions, the first of which was to remove SREIM as the REIT’s manager as soon as practicable. Out of the some 691 million votes cast, 57.5 percent were in favour of the resolution. Read more>>

Country Garden Shares Slide After Moody’s Downgrade

Shares of Country Garden Holdings, one of China’s biggest property developers, tumbled on Monday after ratings agency Moody’s downgraded the firm further into junk territory, amid a brewing real estate crisis in China.

Hong Kong shares of Country Garden slid nearly 7 percent to a two-week low, and were trading close to record lows hit in November 2022. Read more>>

Country Garden, China Vanke See Sales Slide

The slowdown in China’s property market continued in July, with major developers reporting a slump in contracted sales, further exacerbating their liquidity crisis.

Meanwhile, measures announced by the government should alleviate their burden, but liquidity risks remain unless sales improve to reasonable levels, analysts warned. Read more>>

Default Could Be Best Strategy for Country Garden

Default is a taboo most companies are keen to avoid. But sometimes, business operations demand it. Even the bond investors don’t mind.

Country Garden Holdings Co., once China’s biggest real-estate developer by sales, is walking a tightrope. A scrapped share placement last week fueled concerns whether the company has enough money to repay its dollar bonds in the next year, even as ratings agency Moody’s Investors Service says it does. In this case, though, a default would make more sense. Read more>>

More Mainland Cities Roll Out Property Market Support

More Chinese cities are rolling out support measures and easing home purchase curbs as they follow through on the top leadership meeting held last month, which called for the optimization of property policies.

An upturn in China’s property sector, which has played a major role in fueling the nation’s economic output yet has been on a sluggish growth track over recent years, is expected in the second half of the year as restrictions are eased in more places, propelling the recovery of the world’s second-largest economy, experts told the Global Times. Read more>>

Singapore’s Elite Commercial REIT Cuts Distributions 32%

Elite Commercial Real Estate Investment Trust has reported a distribution per unit (DPU) of 1.74 pence for the first half ended Jun 30, after retaining 10 percent of distributable income.

The latest DPU figure represents a 32 percent decline from 2.56 pence in the same period a year ago. Before retention, the DPU stood at 1.94 pence, down 24.2 percent from the previous corresponding period, based on financial results released on Monday (Aug 7). Read more>>

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