In today’s roundup of regional headlines, Hong Kong is reclaiming its crown as the most expensive city to live and work abroad, even as the exodus of expats drags down luxury apartment rents. Mainland Chinese developer Vanke, meanwhile, is proclaiming the bottom of China’s ailing real estate market.
Hong Kong named world’s most expensive expat mail
Hong Kong has been named the most expensive city to live and work abroad this year, according to a new report highlighting the impact of rising living costs and deteriorating macroeconomic trends on the expatriate market.
The city moved up one place in Mercer’s 2022 Cost of Living Index, reclaiming pole position after being ousted to second place by Ashgabat, Turkmenistan, in 2021. It is the fourth time in five years that the Asian financial hub has been ranked as the most expensive location for foreign workers. Read more>>
Expat exodus is driving down luxury apartment rents in Hong Kong
Hong Kong’s luxury real estate bucked the global market trend, becoming the only high-end housing market in 10 major cities to see rents fall this year, according to Knight Frank, as the city’s economy struggled under tight COVID-19 restrictions .
Prime rents fell 1.1 percent in the first quarter from the previous three months, based on a new index compiled by the real estate consultancy. New York led the gains with a 10.6 percent increase, followed by 3.8 percent in Toronto and Singapore and 3.6 percent in London. Read more>>
According to China Vanke, the real estate market in the mainland has bottomed out
Major homebuilder China Vanke said the property market bottomed in the short term, with a sharp monthly rise in sales in June, sparking a property sector rally in trading on Wednesday morning.
Yu Liang, chairman of China’s No. 2 developer, warned the recovery would be slow and mild, but his comments helped the mainland’s CSI Real Estate Index rise 6 percent, while the Hang Seng Mainland Properties Index in Hong Kong rose more than 1 percent. Read more>>
SHKP, Sino Land Upgrade Malls to attract buyers
Some of Hong Kong’s biggest developers are looking to pets, teens, children and digital avatar lovers to lure people back to malls as Hong Kong emerges from its worst of the COVID-19 pandemic.
Sun Hung Kai Properties is investing HK$300 million ($38 million) in renovating its New Town Plaza in Sha Tin, adding 80,000 square feet (7,432 square meters) of entertainment zones tailored for pet lovers, teens and children. Sino Land’s Tmtplaza in Tuen Mun, meanwhile, is betting on luring fashionistas with non-fungible tokens and the prospect of disguising digital avatars. Read more>>
Nanjing Developer Suspends Watermelon Ad
A real estate developer in Nanjing launched an unusual marketing strategy that allowed homebuyers to pay for their homes with watermelons at a price of RMB 20 ($3) per kilogram.
A company representative said Tuesday that the bizarre promotional event had been suspended by order of headquarters. “We were told to delete all promotional posters on the social media platforms,” the person said, noting that the developer may design other types of promotional activities. Read more>>
DBS agrees to sell Tee International properties in Singapore
DBS has signed an agreement to sell 33 Changi North Crescent, a property under contested Tee International, for which the bank is conducting mortgage sales.
In a stock exchange filing on Tuesday, Tee announced that DBS has entered into a purchase agreement for 33CNC with Applied Materials South East Asia, which is expected to close on or about July 18. Read more>>
Moody’s puts Sino-Ocean ratings on review for downgrade
Moody’s Investors Service has placed Sino-Ocean Group Holding’s Baa3 issuer rating under review for a downgrade.
At the same time, the credit agency placed under review a downgrade of the senior unsecured Baa3 ratings for the bonds issued by Sino-Ocean Land Treasure Finance I Ltd, Sino-Ocean Land Treasure Finance II Ltd and Sino-Ocean Land Treasure IV Ltd, which are guaranteed by Sino-Ocean , and the Ba2 rating of the subordinated perpetual securities issued by Sino-Ocean Land Treasure III Ltd and guaranteed on a subordinated basis by Sino-Ocean. Read more>>
S&P upgrades Greenland group
S&P Global Ratings raised Greenland Holdings a notch to CCC on Wednesday after the state-backed Chinese real estate developer completed a one-year maturity extension on $500 million of senior unsecured debt.
Last Wednesday, S&P downgraded Shanghai-based Greenland to “selective default” after the company proposed and later completed a one-year extension of its $500 million bond originally due on June 25. Read more>>
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