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Asia Pacific Property Markets News November

November 30, 2016

South Korea household debt reached the historical high as the Bank of Korea’s data today showed that household loan credit reaching 1,296 trillion won at the July- September quarter end, the highest volume in the country’s history (November 24)

New Zealand central bank warned housing market risks when releasing stability report today; the bank said it has asked the Minister of Finance to agree to add a Debt to Income (DTI) tool to the memorandum of understanding on macro policy (November 30)

China's Dalian Wanda Group said it has bought 100% stake in Dick Clark Productions, for approximately USD 1 billion, marking its entry into the television production industry. After the acquisition is completed, DCP’s management will remain in its entirety (November 4)

Shun Tak Holdings said it has formed a 50-50 partnership with Shanghai Lujiazui Company Limited through subsidiaries, and has acquired the land use rights of a 26,707 square meters site in Qiantan in Shanghai Free Trade Zone (November 3)

CapitaLand reported net profit rose to SGD247.5million(USD175million) in the third quarter, 28.4% higher than that in the same time period a year ago on better operational performance (November 9)

Shimao Property reported unaudited contracted sales value amounted to approximately RMB5.30 billion (October 2015: RMB7.11 billion) and the contracted GFA amounted to 380,342 sq.m. (October 2015: 581,665 sq.m.). The Group’s aggregated contracted sales for the ten months ended 31 October 2016 amounted to approximately RMB56.56 billion, representing a year-on-year increase of 5%. The average selling price for October 2016 was RMB13,937 per sq.m. and for the ten months was RMB13,865 per sq.m. (November 10)

Fantasia Holdings said that the company recently repurchased part of the outstanding USD denominated senior notes due 2017 and due 2019. The repurchased bonds were worth approximately USD12.20 milion in aggregate face value. The USD250 million senior notes due September 2017 carry a coupon rate of 13.75% and while the USD300 million senior notes due January 2019 carry a coupon rate of 10.625%. As at 30 June 2016, Fantasia’s net gearing ratio was 78.1%. As of October 31, the company said it has achieved contracted sales of approximately RMB10.376 billion, completed 86.5% of its sale target for the year (November 10)

China's Landing International said it has reached agreement with Malaysia's Genting International to buy all remaining shares from the latter of its 50% stake in Jeju Shinhwa resort (to be completed) in South Korea's Jeju Island (November 10)

China's third biggest property management company Zhongao Home Group reported adjusted net profit for the first three quarters reached RMB61.33 million, representing an increase of 26.4% as compared to the prior year. (November 11)

Singapore's CapitaLand said today it is on schedule to open 8 new malls in Asia to capture the retail market growth opportunities including 6 in China's Shanghai, Suzhou, Hangzhou, Wuhan, one in Malaysia and one in India (November 17)

Future Land Development Holdings said First Manhattan Co. has become a major strategic shareholder of the company. Robert Gottesman, CEO of First Manhattan Co., and his partner, Adam Schwartz, visited the Company’s headquarters yesterday and held a meeting with Chairman and CEO of the company (November 15)

Property Agency Jones Lang LaSalle (JLL) names Christophe Vicic, who has been Chief Operating Officer, JLL Russia, Ukraine & Kazakhstan, to be be Country Head of Philippines. (November 17)

China's statistics department said property sales prices in more than half of the tier -1 and tier-2 cities turned downward trend in the second half of October when compared with the first half in the month (Nov 18, 2016)

American up-scale casual wear retailer Abercrombie&Fitch announced to close its flagship store, its only shop, in Hong Kong, after announcing the third quarter result which recorded profit drop. The company will drop down the curtain of its Hong Kong shop two years before lease ends. It also decided to close its Seoul flagship shop in January 2017 (November 19)

Distressed Asset Buyer Tai United said it has won an auction of a liquidated hotel asset package in downtown in China's Hangzhou city for RMB1.12billion (November 22)

Shanghai Industrial Urban Development Group Limited said it has secured a 3-year loan agreement with a bank in the amount of RMB3 billion. The interest rate of the loan is approximately 3.8%. The proceeds will be used to repay the shareholders’ loans of the company denominated in foreign currencies (November 24)

Tai United said it plans to acquire a Grade A office building, 10 Hammersmith Grove, in West London from a wholly-owned subsidiary of UK private equity fund Brockton Capital Fund III L.P for HKD1.035 billion (GBP103.5 million) (November 25)

National Australia Bank (NAB) economist Oster says Australia's property market overall is under-supplied, but apartment market tends to be oversupplied and is largely driven by overseas demand. The banks' earlier quarterly property survey expects national residential house prices to strengthen 1.3% in the next year (November 18)

Global Built Asset Performance Index released today by building consultancy firm Arcadis said Singapore generates the highest built asset income per capita in Asia at USD35,900, followed by Hong Kong at USD21,400 (November 24)