China - Housing 01 (May 08 - May 10)

[iam802]

TOL:

When I visit Bloomberg's site, I keep seeing an ad showing 'Mongolia's Property Show'.

I do not know anything about Mongolia.

Is it like 'Shanghai', 'Hong Kong' or for that matter...'Macau'?

What is the selling point of properties in Mongolia?

Is this a sign of a real estate bubble?

[kennynah]

if lucky, your mongolia property sits on a goldmine literally...then huat tat loh.....

[winston]

Not vested.

DJ MARKET TALK: China Developers Down, Skepticism On Govt's Order

0249 GMT [Dow Jones] China's property developers mostly decline, as concerns on whether central government's pledge to limit state-owned companies' participation in property development may lower land costs or consolidate fragmented industry.

"The market is still confused as to the recent policy measures, whether they would work and also, what's next? There are difficulties in trying to tame prices, but not overdo it," says Wu Jianxiong from Central China Securities.

Adds, today's correction could also be technical, following rally in sector last week. China's state assets regulator Thursday ordered 78 companies directly owned by central government, whose core business isn't real estate-related, to exit property development business. Analysts say limiting state-owned companies' involvement in property market could in theory help lower competition during land auctions, but enforcement is key.

Source: Dow Jones Newswire

[winston]

SOEs told to map property sector exit by Mandy Lo and Beth Ye

State-owned enterprises have been told to submit proposals on how how they plan to exit the property market now that dozens of them have been ordered not to acquire any more land.

Seventy-eight SOEs whose core business is not home development met the regulator of state-owned assets last week and were told to send in their responses within 15 days, according to a statement posted on the regulator's website yesterday.

The proposal dragged down stocks of mainland developers further as investors worried more tightening measures may ensue.

Hopson Development (0754) said government control on land supply by suspending land auctions in Beijing will benefit the market. In other parts of the mainland, the highest bidder in a land auction is no longer guaranteed of winning the site. "Developers who make the highest bid no longer have an advantage according to the policy, " said Hopson Development newly appointed chief executive Xue Hu.

"This will not only help ease `irrational investment' but will also be conducive to a healthier market."

Fantasia Holdings (1777) chairman and chief executive Pan Jun said he does not expect immediate improvements in the market.

"I am cautiously optimistic about the new policy. But it may take years to feel the impact because state-owned firms can stay in the property market until they complete all home projects," Pan said.

He believes the process will take five to 10 years as the affected SOEs have huge land reserves in city centers.

Mainland property prices are tipped to grow steadily this year and the government will continue to monitor prices, he said.

Fantasia, meanwhile, said its saleable area may rise 47 percent to 1.13 million square meters this year. As of the end of February, it had a land bank of 10.78 million sq m.

Fantasia's net profit for last year grew 3.4 times to 373 million yuan (HK$424 million) as revenue doubled to 2.46 billion yuan. A final dividend of 1.75 HK cents per share was declared.

Guangdong-based Hopson said its net profit for 2009 surged 195 percent from a year earlier to HK$5.8 billion, thanks to the revaluation of certain investment properties and a decrease in provision for land appreciation tax.


http://www.thestandard.com.hk/news_deta ... 00323&fc=2

[LenaHuat]

TOL:

When I visit Bloomberg's site, I keep seeing an ad showing 'Mongolia's Property Show'.

I do not know anything about Mongolia.

Is it like 'Shanghai', 'Hong Kong' or for that matter...'Macau'?

What is the selling point of properties in Mongolia?

Is this a sign of a real estate bubble?

Hi iam802
Ulan Bator is set to prosper from massive investments in the resources sector of Mongolia. Read abt Temasek's investments in mining companies scouting in Mongolia.

In Hangzhou, some 200 investors commenced queueing at midnite to buy condo units that cost at least RMB10 million. Some of those who worked the graveyard shift failed to secure units :-
http://hznews.hangzhou.com.cn/chengshi/content/2010-03/23/content_3195703.htm

[winston]

Not vested.

DJ MARKET TALK: Citigroup Tips "Land Storm" Coming In China

1528 [Dow Jones] Citigroup tips "land storm" coming in China; notes on March 22, Ministry of Land Resources (MLR) introduced many new measures on land supply, chief of which is MLR announced land sales in local cities should be halted with immediate effect until local governments submit details of land supply plans for overall housing, social welfare housing.

Citi says such policies can effectively guarantee sufficient new land supply allocated for social welfare housing, low-to-middle end housing, supply of which "should jump significantly" from 2H11 and onwards.

Still, another effect of such measure is there will be sharp decline of new land released for high/luxury end housing segment. In this situation, house expects land prices to remain at high level in coming 2-3 years; in contrast to market view, "we think developers with sizeable prime land reserves should benefit," such as China Overseas Land (0688.HK), Shimao Property (0813.HK), Hopson (0754.HK), Poly HK (0119.HK).

Source: Dow Jones Newswire

[millionairemind]

Published March 29, 2010

CBRC tightens property lending as risks grow

Banking regulator steps up efforts to prevent bad debt and asset bubbles

(BEIJING) China's banking regulator ordered lenders to take more care when making real-estate loans, widening efforts to prevent property speculators from causing asset bubbles and bad debt.

Banks should not lend to developers found by state agencies to have held land without building houses, the government said in a statement posted online on Friday evening.

They should also stop approving new lines of credit to 78 government-controlled companies whose core business isn't property development if they use collateral other than construction projects already in progress, the statement said.

China's property prices rose 10.7 per cent last month, the fastest pace in almost two years, fuelling concerns that record lending and inflows of capital from abroad are creating asset bubbles in the world's third-biggest economy.

The government this month raised deposit requirements for buyers at land auctions to 20 per cent of the minimum price to raise costs for developers. It also lifted banks' reserve requirements twice this year and re-imposed a tax on home sales.

'We have to closely monitor China's asset bubbles,' Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), said on Friday at a conference here. Property prices have changed 'quite a lot in the past five years,' he said.

Former Federal Reserve chairman Alan Greenspan on Friday said there are 'bubbles' in China, without indicating whether they were in property and stocks. 'There are significant bubbles in Shanghai and along the coastal provinces, but there's some of that going back into the hinterlands as well,' Mr Greenspan said in an interview on Bloomberg Television.

The regulator's latest order underlines concerns that banks may be at risk from companies that are speculatively raising capital backed by property investments. Banks must carry out 'serious' examinations of developers that are repeatedly using the same pieces of land as collateral for loans, the regulator said in the statement.

'These measures are intended to urge developers with land to build houses and sell them quickly to increase market supply,' said Zhao Qingming, a senior analyst at China Construction Bank Corp, the nation's second-largest lender. 'It may curb fast growth in housing prices, but more measures are needed to tackle the root issue, including controls on land prices and speculative house-purchase investments.'

'We ask banks to check the qualifications of the developers and they must have a face-to-face check,' the CBRC's Mr Liu said.

There are 'serious' bubbles in property prices in China's big cities as about 60 per cent of the residents can't afford to buy a ordinary apartment, China Construction's Mr Zhang said. -- Bloomberg

[LenaHuat]

I watched this ifeng prog (2) on Chinese properties and found it so enlightening.
任志强，北京市华远地产股份有限公司董事长，华远集团总裁，同时兼任北京市商业银行监事、新华人寿保险公司董事。持有中国人民大学法律硕士学位。自1993年起改组成立了北京市华远房地产股份有限公司，并担任董事长兼总经理，创建了"华远"品牌，在房地产界具有极高的知名度。在业内被称为“大哥大

房价是门槛 买不起就别住在北京

任志强谈央企退出楼市：留下的是“核武

[kennynah]

i read from QQ a chinese article on chinese properties..

it was reported that in Mar2010, 2 houses in Beijing were sold each for 5.7亿万... wah dao... that's >S$100mil for each house...

and separately, several reports highlighted the extremely high prices in all major cities of Shanghai, Beijing and Shenzen....

how credible...i duno...

[LenaHuat]

Hi K
Nationwide, it's up 10.7% for Feb 2010. That's only 1 month. Juz an interesting aside, FEO hires Chinese nationals to sell properties here too.