China - Housing 01 (May 08 - May 10)

[winston]

Not vested.

DJ MARKET TALK: China Ppty Prices Firm; More Tightening Eyed -CPY

1209 [Dow Jones] Core Pacific-Yamaichi notes China property prices stay firm so far in 2010, despite data showing lackluster property demand; prices partly supported by low inventory level, decline in supply.

Expects more tightening policies to curb market speculation but tips developers with strong government support, robust FY09 presale and low gearing such as China Overseas Land (0688.HK), Poly (0119.HK), China Resources Land (1109.HK), Beijing Capital Land (2868.HK) would be able to fare better vs those private developers with high gearing ratio and with large, undeveloped landbank, including Evergrande (3333.HK), R&F (2777.HK), Longfor (0960.HK), Greentown (3900.HK).

Keeps China property sector at Overweight. COL +0.4% at HK$15.20, CRL flat at HK$15.84, Greentown down 0.1% at HK$9.85, R&F down 0.4% at HK$11.26.(SUT)

Source: Dow Jones Newswire

[kennynah]

W : ask you something...

suppose you wana buy a downtown beijing (like maybe just next to tiananmen area) condo...how much would you have to pay for a 1000 sq feet unit? what's the longest lease available or do they have freeholds?

thanks...

[winston]

Hi K,

I'm not an expert on BJ Properties.

For a foreigner, you need to be working in the city before you can buy.

There's no Condo around Tiananmen

Suppose you go down to Financial Street or Xidan ( about 15mins West ), the cost is around RMB 40,000 per square meter.

About 15 minutes south of Tiananmen, you can get a condo for about RMB 33,000 per square meter ( this is mau pi ie. not renovated ).

Properties are all lease-hold for 70 years.

Take care,
Winston

[kennynah]

thanks W....wah dao....a small 100metresquare will set back some 3-4 mil RMB or SGD600-800K... not cheap...working in the city should not pose a problem.... simply setup a small business...

[millionairemind]

China risking property bubble with prices rising 20pc a month
Property prices in Britain may be back on a downward trajectory, but there is one market where they are still white hot – China. The Asian superpower is in the midst of such a vast property boom, with prices leaping 20pc a month in some regions, that developments are taking on fairy-tale dimensions.

By Peter Foster in Huairou
Published: 9:43PM GMT 28 Feb 2010
http://www.telegraph.co.uk/finance/news ... month.html

[winston]

And I was wondering why all the real estate plays went up yesterday ...

DJ MARKET TALK: Most Mainland Developers Up;Strong Short-Covering
Mar 10, 2010

1219 [Dow Jones] Most HK-listed mainland property stocks continue recent outperformance, partly on relief rally as ongoing NPC meeting hasn't brought sector-tightening measures despite tough talk by delegates, triggering powerful short-covering.

Sector likely also aided by renewed CNY rise expectations; if CNY does rise, would result in higher NAV measured in HKD. CLSA expects Beijing to resume CNY appreciation to reduce inflationary pressure as exports start to recover, tips CNY "could soon move up again," likely at pace of 5%-7% p.a.

Sino-Ocean Land (3377.HK) +3.4% at HK$7.85, adding to 3-session, 7.2% rally; Minmetals Land (0230.HK) +3.1% at HK$2.00 on top of 7.8% rally since Friday. Shimao Property (0813.HK) +2.5% at HK$14.66, playing some catch-up to China Overseas Land (0688.HK), China Resources Land (1109.HK).


Source: Dow Jones Newswire

[kennynah]

W...do you know if Hu Jinatao stays in the forbidden city like his predecessor Mickey Mao?

[winston]

I dont think anybody is living inside the Forbidden City now.

It's swamped with tourists everyday and there's no modern stuff like HBO

If I've not mistaken, I think Premier Wen lives across from the Forbidden City

[winston]

Not vested.

Beijing target land-hoarding and price speculation in latest move to cool property market
(03-12 17:00)

China will launch a nationwide campaign to crack down on the real estate industry as it tries to rein in sky-rocketing property prices, state media said today.

The five-month crackdown will begin by targeting land hoarding and price speculation this month, said Liao Yonglin, a senior official at the Ministry of Land and Resources, according to Xinhua news agency.

China's real estate prices rose 10.7 percent on year last month, the fastest pace in nearly two years, fuelling concerns that an asset bubble is building that could eventually burst and hurt the wider economy.

High housing prices have also become a heated social issue, especially among young and middle-aged wage earners, who have complained of difficulties in buying a home.

Investigators will look for irregularities in local government land transfers and failure by real estate companies to develop their holdings in accordance with transfer approvals, the report said.

On Wednesday, the ministry also announced rules that require local governments to allot at least 70 percent of their total housing land supply for low-cost housing or the renovation of shanty towns.

The regulations also require developers to pay for land transfers within one year while also curbing them from hoarding space to force prices up.

Authorities on Thursday banned the Pacific Century Group, controlled by Hong Kong tycoon Richard Li, from trading land in Beijing after a company affiliate failed to fulfill contract obligations and instead allowed land to sit idle.

In order to cool the red-hot market, Beijing has already restricted lending, raised downpayments for buyers of second homes and increased interest rates on mortgage loans.

AGENCE FRANCE-PRESSE

[winston]

Not vested. From UOBKH:-

Action

More government policies to cool down the property market. In light of resilient property prices and strong property investment as well as hot land market in China, we believe the government will maintain its tightening stance.

Negative news flow on property sales in near-term. We expect sales to remain weak in the next few weeks on the back of wait-and-see mood in the market. We project March sales to decline around 30% yoy.

More resilient markets in the inner area will benefit the developers with significant exposure there.